Financial Statements Year Ended 9/30/2019NORTH COLLIER FIRE CONTROL
AND RESCUE DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
YEAR ENDED
SEPTEMBER 30, 2019
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT............................................................... 1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)................................... i-xi
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS:
Statementof Net Position................................................................................. 5
Statementof Activities.................................................................................... 6
FUND FINANCIAL STATEMENTS:
Governmental Funds:
BalanceSheet.............................................................................................
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position.................................................................... .
Statement of Revenues, Expenditures and Changes
inFund Balance........................................................................................
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balance of Governmental Funds to the Statement of Activities .......................
Fiduciary Fund - Firefighters' Pension Plan:
Statement of Fiduciary Net Position...................................................................
Statement of Changes in Fiduciary Net Position .....................................................
m
11
12
NOTES TO THE FINANCIAL STATEMENTS......................................................... 13-79
OTHER INFORMATION
COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA
Governmental Funds
Combining Balance Sheet - General Fund - by Service Delivery Area .......................... 80
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance -
General Fund - by Service Delivery Area........................................................... 81
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
NORTH NAPLES SERVICE DELIVERY AREA
BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Summary Statement................................................................... 82
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Detailed Statement.................................................................... 83-85
BIG CORKSCREW ISLAND SERVICE DELIVERY AREA
BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Summary Statement................................................................... 86
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Detailed Statement.................................................................... 87-89
TABLE OF CONTENTS (CONTINUED)
Page(s)
COMBINED SERVICE DELIVERY AREAS
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Impact Fee Fund - Combined Service Delivery Areas Summary Statement ..................... 90
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Impact Fee Fund - Combined Service Delivery Areas Detailed Statement 91
BUDGET TO ACTUAL COMPARISON - OTHER NON -MAJOR GOVERNMENTAL FUND
Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Inspection Fee Fund - Summary Statement........................................................ 92
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Inspection Fee Fund - Detailed Statement......................................................... 93-94
Schedule of Expenditures of Federal Awards -
Year Ended September 30, 2019............................................................ 95
Notes to the Schedule of Expenditures of Federal Awards .............................. 96
OTHER REQUIRED SUPPLEMENTARY INFORMATION
Schedule of District's Proportionate Share of the Net Pension Liability - Florida Retirement
System Pension Plan (FRS)...........................................................................
97
Schedule of District Contributions - Florida Retirement System Pension Plan (FRS)...........
97
Schedule of District's Proportionate Share of the Net Pension Liability - Health Insurance
Subsidy Pension Plan (HIS)...........................................................................
98
Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS) .............
98
Notes to the Required Supplementary Information - FRS/HIS......................................
99-100
Schedule of Changes in the Net OPEB Liability and Related Ratios, GASB No. 75 and
Related Notes to the Schedule........................................................................
101
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Basic Financial Statements
Performed in Accordance with Government Auditing Standards ..................................... 102-103
Independent Auditor's Report on Compliance for Each Major Program/Project and on
Internal Control Over Compliance Required by the Uniform Guidance ............................ 104-106
Schedule of Findings and Questioned Costs - Federal Awards ......................................... 107-108
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes........................................................................ 109
Independent Auditor's Report to Management............................................................ 110-112
Management's Response to Independent Auditor's Report to Management .......................... Exhibit
TUSCAN
& Company, PA
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants & Consultants
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, the
non -major fund and the fiduciary fund type of North Collier Fire Control and Rescue District (the "District") as of
and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively
comprise the District's basic financial statements as listed in the table of contents.
Management's Responsibilityfor the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the
financial statements of North Collier Fire Control and Rescue District Firefighters' Pension Trust Fund
("Fiduciary Fund - Pension Fund") as of and for the year ended September 30, 2019, which represent 100% of the
assets, liabilities and net position as well as 100% of the revenue and expenses of the District's Fiduciary Fund.
Those financial statements were audited by other auditors whose report thereon has been furnished to us, and
our opinion, insofar as it relates to the amounts included for North Collier Fire Control and Rescue District
Firefighters' Pension Trust Fund, is based on the report of the other auditors. We also did not audit the financial
statements of the Florida Retirement System Pension Plan (FRS) or Health Insurance Subsidy Pension Plan (HIS)
as of and for the year ended June 30, 2019. The District is required to record its proportionate share of the FRS
and HIS liability in the District's government -wide financial statements as of September 30, 2019 and for the year
then ended. The Florida Retirement System financial statements were audited by other auditors whose reports
have been furnished to us, and our opinion, insofar as it relates to the amounts included for the District's
government -wide financial statements, are based on the reports of the other auditors. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States of America. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the District's preparation and fair
INTEGRITY ......... SERVICE ......... EXPERIENCE
Tax Division
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Board of Commissioners
North Collier Fire Control and Rescue District
Page 2
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Summary of Opinions
Opinion Unit
Governmental Activities
General Fund
Impact Fee Fund
Inspection Fee Fund
Firefighters' Pension Trust Fund
Opinions
Unmodified Opinions
Type of Opinion
Unmodified
Unmodified
Unmodified
Unmodified
Unmodified
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, each major
fund, the non -major fund and the fiduciary fund type of North Collier Fire Control and Rescue District as of
September 30, 2019, and the respective changes in financial position, for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matters
During the year ended September 30, 2019, the District's unrestricted net asset balance remained a deficit of
$9,561,300, due substantially to recording the current year actuarially determined OPEB liability of $8,893,953 and
the District's proportionate share of its pension liability of 19,599,139. This is a non -cash actuarially determined
liability related to the future cost of allowing retirees to remain on the District's health care policy and for paying a
portion of retiree coverage. The pension liability is a non cash actuarially determined liability for the District's
participation in the State's FRS defined benefit retirement system and the District's Firefighters' Retirement Plan.
The District's fund balance remains approximately equal to four (4) months budgeted expenditures. Our opinion
was not modified for this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages i-xi, Schedule of the District's Proportionate Share of the Net Pension
Liability - Florida Retirement System Pension Plan (FRS), Schedule of District Contributions - Florida Retirement
System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability - Health
Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions - Health Insurance Subsidy Pension
Plan (HIS), Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability
and Related Ratios GASB No. 75 and Related Notes to the Schedule, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic
Board of Commissioners
North Collier Fire Control and Rescue District
Page 3
financial statements, is required by the Governmental Accounting Standards Board which considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information - management's discussion and analysis (MD&A), Schedule of the District's Proportionate Share of
the Net Pension Liability - Florida Retirement System Pension Plan (FRS), Schedule of District Contributions -
Florida Retirement System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension
Liability - Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions - Health Insurance
Subsidy Pension Plan (HIS), Notes to the Required Supplementary Information and Schedule of Changes in the
Net OPEB Liability and Related Ratios GASB No. 75 and Related Notes to the Schedule, as listed in the table of
contents, in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the required supplementary information - management's discussion and analysis
(MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability - Florida Retirement System
Pension Plan (FRS), Schedule of District Contributions - Florida Retirement System Pension Plan (FRS), Schedule
of the District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy Pension Plan (HIS),
Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS), Notes to the Required
Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No. 75
and Related Notes to the Schedule, as listed in the table of contents, because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise North Collier Fire Control and Rescue District's basic financial statements. The required
supplementary information other than MD&A - budgetary comparison information is presented for purposes
of additional analysis and is not a required part of the basic financial statements. The required supplementary
information other than MD&A budgetary comparison information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the required
supplementary information other than MD&A - budgetary comparison information is fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The combining financial statements as listed in the table of
contents, are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining financial statements are the responsibility of management and were derived from and relate directly
to the underlying accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
Board of Commissioners
North Collier Fire Control and Rescue District
Page 4
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining financial statements are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the District's basic financial statements. The Exhibit - Management's Response to Independent
Auditor's Report to Management is not a required part of the basic financial statements but is required by
Government Auditing Standards. Such information has not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on it.
Other Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated June 2, 2020, on
our consideration of North Collier Fire Control and Rescue District's compliance with provisions of Section
218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and
the results of that testing, and to provide an opinion on compliance with the aforementioned Statute. That
report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415, Florida Statutes
in considering North Collier Fire Control and Rescue District's compliance with Section 218.415, Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 2, 2020, on
our consideration of the District's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contract and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering North Collier Fire Control and Rescue District's internal control over financial
reporting and compliance.
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TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 2, 2020
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
Management's Discussion and Analysis
of Financial Statements FYE September 30, 2019
This Discussion and Analysis of the North Collier Fire Control & Rescue District's ("The
District") basic financial statements is provided to assist the reader in understanding the
District's financial activities and significant changes in ending financial position for the
fiscal year ended September 30, 2019. These statements include the requirements of
GASB Statements #34, #68 and #75 and incorporate those annual reporting requirements,
as well as the financial statement format and presentation.
Contained within are the basic financial statements, consisting of the government -wide
financial statements, governmental fund and fiduciary fund financial statements and
related notes to the financial statements. This Discussion and Analysis will also provide
an analytical overview of these statements, including comparisons of the District's
financial position at September 30, 2019 versus September 30, 2018.
District Highlights
1. At the conclusion of fiscal year 2019, the District's assets exceeded its liabilities,
resulting in net assets of $23,115,686 as compared to net assets at September 30,
2018 of $25,778,323.
2. The District had ($9,561,300) deficit of unrestricted net assets at September 30, 2019
as compared to ($7,858,148) deficit of unrestricted net assets at September 30, 2018.
The amount of unrestricted net assets decreased by $1,703,152.
3. Total revenues on the government -wide basis decreased $15,354 or -1% percent, in
comparison to the prior year.
4. Total expenses on the government -wide basis increased by $6,530,260 or 17%
percent, in comparison to the prior year.
Government -wide Financial Statements
Government -wide financial statements (Statement of Net Position and Statement of
Activities found on pages 5 and 6) are intended to allow a reader to assess a
government's operational accountability. Operational accountability is defined as the
extent to which the government has met its operating objectives efficiently and
effectively, using all resources available for that purpose, and whether it can continue to
meet its objectives for the foreseeable future. Government -wide financial statements
concentrate on the District as a whole and do not emphasize fund types.
The Statement of Net Position (page 5) presents information on all of the District's assets
and liabilities, with the difference between the two reported as net assets. The District's
capital assets are included in this statement and reported net of their accumulated
depreciation.
The Statement of Activities (page 6) presents revenue and expense information showing
how the District's net assets changed during the fiscal year. Both statements are
measured and reported using the economic resource measurement focus (revenues and
expenses) and the accrual basis of accounting (revenue recognized when earned and
expense recognized when incurred).
BRV 6/10/2020
Governmental Fund Financial Statements
The accounts of the District are organized on the basis of governmental funds, each of
which is considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self -balancing accounts that comprise its assets,
liabilities, fund equity or retained earnings, revenues and expenditures. Government
resources are allocated to and accounted for in individual funds based upon the purpose
for which they are to be spent and the means by which spending activities are controlled.
Governmental fund financial statements (found on pages 7 and 9) are prepared on the
modified accrual basis using the current financial resources measurement focus. Under
the modified accrual basis of accounting, revenues are recognized when they become
measurable and available as net current assets.
Fiduciary Fund
The fiduciary fund is used to account for resources held for the benefit of retired
employees that participated in the District's Firefighters' Pension Plan (Plan 2). The
fiduciary funds are not reflected in the government -wide financial statements because the
resources of this fund are not available to support the District's programs. The
accounting used for the fiduciary fund is much like that used for governmental
proprietary funds. The fiduciary fund financial statements can be found on pages 11 and
12.
Notes to the Financial Statements
The notes to the financial statements explain in detail some of the data contained in the
preceding statements and begin on page 13. These notes are essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Government -Wide Financial Analysis
The government -wide financial statements are designed so that the user can determine if
the District's financial condition is better or worse than the prior year.
BRV 6/10/2020 ii
The following is a Condensed Summary Statement of Net Position for the District
(Primary Government) at September 30, 2019 and 2018:
Summary Statement of Net Position
September 30
Assets:
2019
2018
Current and Other Assets
$16,904,163
$12,412,353
Capital Assets
35,585,634
36,618,338
Total Assets
52,489,797
49,030,691
Deferred Outflows - Pensions
16,789,247
16,656,160
Liabilities:
Current Liabilities
2,461,122
1,905,117
Non -Current Liabilities
33,099,603
29,525,357
Total Liabilities
35,560,725
31,430,474
Net Position:
Deferred Inflows - Pensions
10,602,633
8,478,054
Net Investment in Capital Assets
32,511,144
33,522,765
Restricted
165,842
113,706
Unrestricted (deficit)
(9,561,309
(7,858,148)
Total Net Position
$23,115,686
$25,778,323
Current and other assets represent 32 percent of total assets at September 30, 2019, as
compared to 25 percent of total assets at September 30, 2018. Current assets at September
30, 2019 are comprised of unrestricted cash balances of $6,803,173, restricted cash of
$700,081, investments of $7,516,718, due from other governments of $564,556, other
receivables of $297,150 and other assets of $1,022,485. The balances of unrestricted cash
represent amounts that are available for spending at the discretion of the Board of Fire
Commissioners of the District. Restricted cash balances are comprised of the impact fee
funds restricted for the purchase of capital assets, and unspent inspections fee revenue
restricted to support the inspection of new construction.
The net investment in capital assets represent 141 percent of net assets at September 30,
2019, as compared to 130 percent at September 30, 2018. These assets are comprised of
land, buildings, improvements, equipment, furniture, and vehicles, net of accumulated
depreciation, and the outstanding related debt used to purchase the assets. The assigned
fund balance of $13,786,863 represents resources available for spending at September 30,
2019. The District currently has $0 fund balance unassigned by the Board.
BRV 6/10/2020 Ill
Summary of Revenues, Expenses and Changes in Net Assets
For the Years Ended September 30, 2019 and September 30, 2018
Revenues:
2019
2018
General Revenues
Ad Valorem Taxes
$37,400,439
$35,131,208
Program Revenues
Grants
1,233,337
627,271
Charges for Services
2,609,417
2,625,917
Miscellaneous
Impact Fees
97,257
3,228,814
Investment Earnings
477,427
123,270
Gain (Loss) on Disposition of
Capital Assets
1,403
(48 415)
Other
337,197
483,766
Total Revenues
42,156,477
42,171,831
Expenses:
Public Safety —Fire/ Rescue Service
44,819,114
38,288,854
Increase (Decrease) in Net Position
(2,662,637)
3,882,977
Net Position -Beginning of Year,
As Originally Stated
25,778,323
28,256,992
Prior Period Adjustment — GASB No. 75
-
(6,361,646)
Net Position, Beginning of Year, As
Restated
25,778,323
21,895,346
Net Position -End of Year
$23,115,686
25,778.323
BRV 6/10/2020 iv
The assessed value of the property within the North Naples Service Delivery Area
increased 5.1 percent for the 2018-2019 fiscal year as compared to the prior year's
assessed value maintaining to the millage rate of 1.000 mils, resulting in an increase in
Ad Valorem tax revenues of $1,615,305. The property values in the North Naples
Service Delivery Area decreased by 25 percent during the fiscal years 2007-2012,
resulting in a decrease in Ad Valorem revenue. However, property values have since
increased between 2012 and 2018 and have now exceeded the previous high point in
value during FYE 9-30-07.
The Board adopted a millage rate of 1.000 mils in the North Naples Service Delivery
Area taxing unit, or $1.00 for every $1,000 of taxable property value. This millage rate
was 2.41 percent more than the rolled back rate (the taxing rate necessary to generate the
same Ad Valorem revenue as was generated during the 2017-2018 fiscal year) of .9765.
The assessed value of the property within the Big Corkscrew Island Service Delivery
Area increased 12.7 percent for the 2018-2019 fiscal year as compared to the prior year's
assessed value, resulting in an increase in Ad Valorem tax revenues of $653,926. The
property values in the Big Corkscrew Island Service Delivery Area decreased by 66
percent during the fiscal years 2007-2012, resulting in a decrease in Ad Valorem revenue.
Although property values have increased between 2012 and 2019, property value in the
Big Corkscrew Island Service Delivery Area is still 35 percent lower in FYE 9-30-19
than it was in FYE 9-30-07.
The Board adopted a millage rate of 3.50 mils in the Big Corkscrew Island Service
Delivery Area taxing unit, or $3.50 for every $1,000 of taxable property value. This
millage rate was 13.81 percent more than the rolled back rate (the taxing rate necessary to
generate the same Ad Valorem revenue as was generated during the 2017-2018 fiscal
year) of 3.2950.
Prior to the 2007-2008 fiscal year, the increase in Ad Valorem revenue resulting from the
increase in property value was sufficient to provide adequate funds to support
operational, capital and reserve financial requirements in the District without increasing
the millage rate. While property values have been on the increase over the last few years,
the increases have not been sufficient to prevent the use of reserves to fund capital
purchases.
The following chart identifies the change in appraised property values in the District by
service delivery area and the millage rate maintained by the District.
BRV 6/10/2020 V
$35,000,000,000
$30,000,000,000
$25,000,000,000
$20,000,000,000
$15,000,000,000
$10,000,000,000
$5,000,000,000
$3,000,000,000
$2,500,000,000
$2,000,000,000
North Naples SDA Property Value 2003 - 2019
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
Big Corkscrew SDA Property Value 2003 - 2019
$1, 500,000,000
$1,000,000,000
$500,000,000
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 20
BRV 6/10/2020 VI
0920
08 20
07 2006 2005 2004 2003
Fund Balance — Governmental Fund Financial Statements
The Board of Fire Commissioners' directive is to utilize the fund balance and cash
reserves of the General Fund to fund only capital purchases and improvements, and to
maintain the District's financial position. During the 2016-2017 fiscal year, the District
utilized approximately $2.7 million of reserves to fund operating expenses due to two
significant hurricanes (Matthew and Irma) in addition to an extreme brush fire season,
among other factors. However, the District was able to increase the General Fund
balance by over $1.9 million from $8,919,984 at September 30, 2017 to $10,860,101 at
September 30, 2018. This includes the non -spendable amount of $1,040,526 restricted
for prepaid expenses, $9,014,782 of assigned reserves, and $804,793 in unassigned
reserves. During the 2018-2019 fiscal year, the District received reimbursement of
$843,685 from FEMA for many of the Hurricane Irma expenses incurred. Receipt of
these reimbursement funds have been used to replenish the District's General Fund
reserves. At September 30, 2019, the District had General Fund reserves totaling
$14,809,348. This includes the non -spendable amount of $1,022,485 restricted for
prepaid expenses, and $13,786,863 for assigned reserves.
Assigned reserves have been established and maintained in accordance with anticipated
future needs of the District, including operating expenses for the first quarter of the fiscal
year prior to the receipt of Ad Valorem revenue, and the replacement of capital assets.
Additionally, increases in health insurance, and other personnel and operating expenses
that require funds to be set aside, or assigned, to prepare for the funding of future
expenditures. The following General Fund Assigned Reserves were approved for the
fiscal year ended September 30, 2019:
Non Spendable Fund Balance Amount
General Fund Prepaid Expenses 1.0
Assigned Fund Balance Amount
Operating Reserve — First Quarter $ 7,621,213
Emergency Reserve 5,465,650
Fire Apparatus 700,000
Total Assigned Reserves S 13,786,863
Unassigned Fund Balance Amount
General Fund — Unassigned 0
Total General Fund Reserves $14,809„
Impact Fees
With the creation of the North Collier Fire Control and Rescue District in January 2015,
an impact fee study was performed to establish impact fee rates for the new District.
However, that study was not completed and new rates were not adopted until October 1,
2016. Prior year impact fee assessments were based on a structure's square footage. The
new rate structure bases fees on structure usage classifications and the methodology
utilizes population rather than emergency call volume. The impact of the change in
methodology has resulted in a decrease in impact fee receipts. Total impact fee receipts
decreased 71 percent from fiscal year 2015-2016 to 2018-2019 (from $2,674,309 to
BRV 6/10/2020 vii
$774,769). Total Impact Fee Fund expenses for the 18-19 fiscal year were $127,392,
consisting of Collier County collection fees, permitting and engineering fees for vacant
land, emergency traffic signal installation, and the annual debt service payment for land
purchased in the Big Corkscrew Service Delivery Area.
Inspection Fees
Inspection fee revenue for the year ended September 30, 2019 was $2,002,610
representing an increase of $51,095 or 2.6 percent as compared to inspection fee revenue
in the prior fiscal year (2018). In June of 2014, the District terminated its Interlocal
Agreement with the Fire Code Official's office to provide fire plan review services and
assumed the responsibility for those plan reviews. As a result, $949,207 of the fund's
revenue was attributable to plan review fees. The Inspection Fee Fund had sufficient
revenue in the 2018-2019 fiscal year to support the majority of functions associated with
new construction inspections and plan reviews. However, based on receipts for the first
half of the 2019-2020 fiscal year for both inspection fees and plan review fees, there may
be less collected than the previous year. The Board held a special meeting in early 2018
discussing inspection and other prevention bureau fees. It was determined rate increases
were necessary (as previous rates were unchanged since 2003) and the Board adopted the
new fee structure on May 10, 2018. The anticipated increases in revenue may not be seen
immediately and is contingent on the volume of new construction projects.
Budgetary Highlights
Budget versus actual comparisons are reported in the required supplementary information
other than management's discussion and analysis on pages 81 through 94 and are
reflected by taxing subunit (service delivery area).
The amendments to General Fund revenue were necessary to reflect an increase of
$800,000 in grant revenue (Hurricane Irma / FEMA), an increase of $300,000 (interest
income due to newly established Gov't Cash Pool Account), elimination of Transfer from
Impact Fee Fund ($418,333) and adding $445,486 in debt proceeds associated with lease -
to -purchase agreement for one radio equipment. By these amendments, General Fund
revenue was increased by $1,127,153.
The amendments to the General Fund expenditures were a result of several factors.
Budgeted personnel expenses were increased by $210,000 to reflect the anticipated PEHP
contribution. Amendments were also made to capital expenses (an increase of $479,346)
pertaining to the capital lease purchase of Motorola Radio equipment.
Capital Assets
Non -depreciable capital assets include land and construction in progress. Depreciable
assets include buildings, improvements other than buildings, equipment, furniture and
vehicles.
The following is a schedule of the District's capital assets as of September 30, 2019 and
2018.
BRV 6/10/2020 viii
Capital Assets
September 30
Capital Assets
2019
2018
Land
$15,712,989
$15,712,989
Construction in Progress
1,319,431
1,317,631
Total Capital Assets not Depreciated
17,032,420
17,030,620
Assets Held Under Capital Lease
4,058,233
3,612,747
Buildings
20,799,903
20,674,645
Vehicles
8,788,161
8,926,075
Office Equipment
1,424,716
1,222,924
Equipment & Machinery
3,957,340
3,821,928
Total Capital Assets Being Depreciated
39,028,353
38,258,319
Accumulated Depreciation
Assets Held Under Capital Lease
(947,042)
(586,213)
Buildings
(8,404,324)
(7,635,683)
Vehicles
(7,188,103)
(6,933,206)
Office Equipment
(823,007)
(678,883)
Equipment & Machinery
(3,112,663)
(2,836,616)
Total Accumulated Depreciation
(20,475,139)
(18,670,601)
Total Capital Assets being Depreciated,
Net
18,553,214
19,587,718
Capital Assets — Net of Depreciation
35,585,634
36,618,338
Less: Capital Lease/Note Payables
(3,074,4901
(3,095,573)
Net Assets Invested in Capital Assets
Net of Related Debt
$32,511,144
$33,522,765
Significant capital asset purchases made during the fiscal year ended September 30, 2019
include:
1. Building improvements (General Fund) totaling $120,533 at the Taylor Rd. site
($36,751), Station 43 ($1,350), Station 45 ($31,704), Station 46 ($29,736), Station
48 ($2,550), Sun Century ($6,054), and various Station equipment ($12,388).
2. Radio equipment (88 radios, 3 repeaters) totaling $475,171which is associated
with the capital lease.
3. Fire and Rescue Equipment totaling $24,520 including rescue saws, ball intake
valves, thermal imaging cameras, and AC-17 auto cribs.
4. Medical equipment totaling $16,422 including thirteen (13) defibrillator units w/
cases.
5. Dive equipment totaling $6,819 (air packs and a dry suit).
6. Training equipment totaling $3,883 (smoke generator and thermal imaging
camera).
7. Bunker Gear (22 sets) totaling $47,564
8. Shop equipment ($29,396) including an Emission System cleaning system and (1)
5-ton forklift.
BRV 6/10/2020 ix
9. Other equipment totaling $156,400 (laptop computers, MDT computers, server
and router equipment).
10. Impact Fee Capital purchases totaling $6,525, consisting of:
a. Station 42 Emergency Traffic Signal (400' additional striping) - $4,725
b. Yarberry Lane property (planning) - $1,800
For additional information on the District's capital assets, see Note E on pages 38 and 39.
Debt Administration
As of September 30, 2019, the District had long term obligations of $33,631,752, as
compared to $29,991,928 at September 30, 2018 an increase of $3,639,824 or 12 percent.
The significant increase is largely due to the increase in the net Pension Liability — FPT
(Firefighter Pension Trust). Additionally, the District added a capital lease for radio
communications equipment during the fiscal year ended September 30, 2019. That debt
consists of:
1. Compensated absences (accrued vacation liability) in the amount of $2,064,170,
as compared to $2,074,495 at September 30, 2018.
2. Net OPEB obligation of $8,893,953 as compared to $10,173,608 at September 30,
2018, representing post -employment health insurance obligations pursuant to
GASB No. 75.
3. Capital lease for medical equipment, fire apparatus, and radio equipment
identified above in the total amount of $2,844,490. This includes the lease to
purchase agreement for the three fire engines and one ladder truck was entered
into on January 15, 2016, the lease to purchase agreement for one velocity ladder
truck was entered into on May 1, 2017 and the lease to purchase agreement for
radio equipment which was entered into on May 20, 2019.
4. Note payable for the purchase of land in the amount of $230,000.
5. Pension liability (FRS) in the amount of $9,378,787 (see Note F).
6. Pension liability (HIS) in the amount of $1,861,254 (see Note F).
7. Pension liability (Ch. 175) in the amount of $8,359,098 (see Note F).
Economic Facts and Next Year's Budget Millage Rates
The following factors were being taken into consideration when the fiscal year ending
September 30, 2020 budget was prepared:
1. Appraised taxable property values increased by $1,575,567,662, or 4.9 percent
for tax year 2019 (FY 2020) in the North Naples service delivery area as
compared to an increase of 5.1 percent in 2018. In the Big Corkscrew service
delivery area, taxable property values increased by $183,207,955 or 11 percent
for tax year 2019 (FY 2020) as compared to an increase of 12 percent in 2018.
2. The Board adopted a millage rate of 1.000 mils in the North Naples service
delivery area and 3.75 mils in the Big Corkscrew service delivery area for the
fiscal year ending September 30, 2020. The Board believes the increase in
valuation (in addition to an increase to the millage rate in the Big Corkscrew
service delivery area from 3.50 mils to 3.75 mils while maintaining the same
millage rate in the North Naples service delivery area) is necessary to replace
BRV 6/10/2020 x
some of the reserves used in the 16-17 year in addition to compensate for future
capital funding. The Board has expressed the desire to continue to move towards
one unified taxing rate District wide. However, the alternative addition of a non -
ad valorem fire fee assessment was not approved by local voters as of the
November 2017 elections. Funding mechanisms and millage caps will be
analyzed and reviewed by the District on a regular basis to ensure adequate
funding.
No use of General Fund reserves has been budgeted; rather, the Board has
provided direction to add over $200,000 to reserves. Limited capital purchases
include various computer hardware and equipment, radios, and dive team
equipment.
Request for Information
This financial report is designed to provide the reader an overview of the District.
Questions regarding any information provided in this report should be directed to: Ben
Van Klingeren, Chief Financial Officer, North Collier Fire Control & Rescue District,
1885 Veterans Park Drive, Naples, FL 34109, 239-597-1322, e-mail:
bvanklin eg ren(&,,northcollierfire.com.
BRV 6/10/2020 xi
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 of 112
STATEMENT OF NET POSITION
September 30, 2019 Governmental
Activities
ASSETS
Current assets:
Cash and cash equivalents $ 6,803,173
Restricted cash and cash equivalents 700,081
Investments 7,516,718
Due from other governments 564,556
Other receivables 297,150
Other assets 1,022,485
Total current assets 16,904,163
Noncurrent assets:
Capital assets:
Land 15,712,989
Construction in progress 1,319,431
Depreciable buildings, equipment, and vehicles
(net of $20,475,139 accumulated depreciation) 18,553,214
Total noncurrent assets 35.585.634
TOTAL ASSETS 52,489,797
DEFERRED OUTFLOWS OF RESOURCES 16,789,247
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses
1,175,739
Contract deposits
7,500
Unearned revenue
745,734
Current portion of long-term obligations
532,149
Total current liabilities
2,461,122
Noncurrent liabilities:
Noncurrent portion of long-term obligations
33,099,603
TOTAL LIABILITIES 35,560,725
DEFERRED INFLOWS OF RESOURCES 10,602,633
NET POSITION
Net investment in capital assets 32,511,144
Restricted 165,842
Unrestricted (deficit) (9,561,300)
TOTAL NET POSITION $ 23,115,686
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF ACTIVITIES
Year Ended September 30, 2019
EXPENSES
Governmental Activities
Public Safety - Fire Protection
Personnel services
Operating expenses
Depreciation
Interest and fiscal charges
TOTAL EXPENSES - GOVERNMENTAL ACTIVITIES
PROGRAM REVENUES
Charges for services
Operating grants and contributions
NET PROGRAM EXPENSES
GENERAL REVENUES
Ad Valorem taxes
Impact fees
Interest
Gain on disposition of capital assets
Other
TOTAL GENERAL REVENUES
DECREASE IN NET POSITION
NET POSITION - Beginning of the year
NET POSITION - End of the year
The accompanying notes are an integral part of this statement.
Page 6of112
Governmental
Activities
$ 37,799,304
4,976,492
1,918,842
124,476
44,819,114
2,609,417
1,233,337
40,976,360
37,400,439
97,257
477,427
1,403
337,197
38,313,723
(2,662,637)
25,778,323
$ 23,115,686
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 7 of l ] 2
BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2019
Total
General
Impact Fee
Inspection Fee
Governmental
Fund
Fund
Fund
Funds
ASSETS
Cash and cash equivalents $
6,803,173
$ - $
-
$ 6,803,173
Restricted cash and cash equivalents
-
480,216
219,865
700,081
Investments
7,265,674
251,044
-
7,516,718
Due from other governments
385,298
49,131
130,127
564,556
Due from other funds
183,370
-
-
183,370
Other receivables
297,150
297,150
Prepaid expenses
1,022,485
-
-
1,022,485
TOTAL ASSETS $
15,957,150
$ 780,391 $
349,992
$ 17,087,533
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $ 1,140,302 $ $ 35,437 $ 1,175,739
Retainage payable - - -
Due to other funds - 34,657 148,713 183,370
Contract deposits 7,500 - - 7,500
Unearned revenue - 745,734 745,734
TOTAL LIABILITIES 1,147,802 780,391 184,150 2,112,343
FUND BALANCE
Nonspendable 1,022,485 - 1,022,485
Restricted - 165,842 165,842
Assigned 13,786,863 - 13,786,863
Unassigned - -
TOTAL FUND BALANCE 14,809,348 165,842 14,975,190
TOTAL LIABILITIES AND
FUND BALANCE $ 15,957,150 $ 780,391 $ 349,992 $ 17,087,533
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30, 2019
Total fund balance of governmental funds
Amounts reported for governmental activities in the
Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds.
Capital assets not being depreciated:
Land
Construction in progress
Governmental capital assets being depreciated:
Building, equipment and vehicles
Less accumulated depreciation
15,712,989
1,319,431
39,028,353
(20,475,139)
Deferred outflows and deferred inflows related to pensions are applied to
future periods and, therefore, are not reported in the governmental funds.
Deferred outflows - Net OPEB Liability 828,410
Deferred outflows - FRS/HIS 4,381,407
Deferred outflows - FPT 11,579,430
Deferred inflows - Net OPEB Liability (2,566,273)
Deferred inflows - FRS/HIS (3,858,485)
Deferred inflows - FPT (4,177,875)
Long-term obligations are not due and payable in the current period
and, therefore, are not reported in the governmental funds.
Net OPEB liability
(8,893,953)
Net pension liability - FRS
(9,378,787)
Net pension liability - HIS
(1,861,254)
Net pension liability - FPT
(8,359,098)
Capital leases
(2,844,490)
Note payable
(230,000)
Compensated absences
(2,064,170)
Elimination of interfund amounts:
Due to other funds (183,370)
Due from other funds 183,370
Page 8 of 112
Amount
$ 14,975,190
17,032,420
18,553,214
16,789,247
(10,602,633)
(33,631,752)
Total net position of governmental activities $ 23,115,686
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 9 of 112
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended September 30, 2019
Total
General Impact Fee Inspection Fee Governmental
Fund Fund Fund Funds
REVENUES
Ad Valorem taxes $
37,400,439 $
$
$
37,400,439
Intergovernmental revenue:
State firefighter supplement
74,837
74,837
Federal and state grants
1,107,120
1,107,120
Other intergovernmental
51,380
51,380
Charges for services:
Inspection fees and other
631,161
1,029,049
1,660,210
Plan review fees
-
949,207
949,207
Impact fees
-
97,257
-
97,257
Miscellaneous:
Interest
422,938
30,135
24,354
477,427
Other
337,197
-
337,197
TOTAL REVENUES
40,025,072
127,392
2,002,610
42,155,074
EXPENDITURES
Current
Public safety
Personnel services
30,291,081
-
1,855,824
32,146,905
Operating expenditures
4,864,295
17,547
94,650
4,976,492
Capital outlay
880,707
6,525
-
887,232
Debt service:
Principal reduction
409,069
57,500
466,569
Interest and fiscal charges
78,656
45,820
-
124,476
TOTAL EXPENDITURES
36,523,808
1271392
1,950,474
38,601,674
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES 3,501,264
OTHER FINANCING SOURCES AND USES
Proceeds from capital lease 445,486
Proceeds from disposition of capital assets 2,497
Transfers in -
Transfers out -
TOTAL OTHER FINANCING SOURCES
AND USES 447,983
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES 3,949,247
FUND BALANCE - Beginning of the year 10,860,101
FUND BALANCE - End of the year $ 14,809,348 $
The accompanying notes are an integral part of this statement.
52,136 3,553,400
- 445,486
2,497
_ 447,983
52,136 4,001,383
113,706 10,973,807
$ 165,842 $ 14,975,190
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE
OF GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Year Ended September 30, 2019
Net change (revenues and other financing sources over (under) expenditures
and other financing uses) in fund balance - total governmental funds
The increase (change) in net position reported for governmental activities
in the Statement of Activities is different because:
Governmental funds report capital outlays as expenditures.
In the Statement of Activities, however, the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense. The loss on disposition of capital assets
decreases the net position.
Plus: expenditures for capital assets
Less: proceeds on disposition of capital assets
Less: loss on disposition of capital assets
Less: current year depreciation
The issuance of debt is reported as a financing source in governmental
funds and thus contributes to the change in fund balance. In the
Statement of Net Position, however, issuing debt increases long-term
liabilities and does not affect the Statement of Activities.
Similarly, repayment of principal is an expenditure in the
governmental funds but reduces the liability in the Statement of
Net Position.
Borrowings (proceeds from issuance):
Less: capital lease
Repayments (principal retirement):
Plus: capital leases
Plus: note payable
Some expenses reported in the Statement of Activities do not require the
use of current financial resources and therefore are not reported as
expenditures in the governmental funds.
(Increase) decrease in Net OPEB liability
(Increase) decrease in net pension liability - FRS
(Increase) decrease in net pension liability -HIS
(Increase) decrease in net pension liability - FPT
(Increase) decrease in compensated absences
Increase (decrease) in deferred outflows - OPEB
(Increase) decrease in deferred inflows - OPEB
Increase (decrease) in deferred outflows - FRS/HIS
(Increase) decrease in deferred inflows - FRS/HIS
Increase (decrease) in deferred outflows - FTP
(Increase) decrease in deferred inflows - FTP
Decrease in net position of governmental activities
The accompanying notes are an integral part of this statement.
887,232
(2,497)
1,403
(1,918,842)
Page 10 of 112
Amount
$ 4,001,383
(1,032,704)
(445,486)
(445,486)
409,069
57,500
466,569
1,279,655
83,428
151,121
(5,185,436)
10,325
418,746
(2,023,664)
(1,400,530)
394,893
1,114,871
(495,808)
(5,652,399)
$ (2,662,637)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF FIDUCIARY NET
POSITION - FIDUCIARY FUND
September 30, 2019
ASSETS
Investments, at fair value:
Cash and cash equivalents - money market
Fixed income mutual funds
Equity securities
U.S. Government securities
Corporate bonds
Real estate
Prepaid expenses
Due from other governments - State
Due from District
Due from employees
Due from securities sold
Accrued investment income
TOTAL ASSETS
LIABILITIES
Accounts payable
Due for securities purchased
Unearned Revenue
TOTAL LIABILITIES
NET POSITION
Restricted for DROP benefits
Restricted for defined pension benefits
TOTAL NET POSITION
The accompanying notes are an integral part of this statement.
Page 11 of 1 12
Firefighters'
Pension
Fund
$ 1,391,175
4,377,192
60,815,235
7,976,249
8,408, 815
6,636,124
89,604,790
4,020
72,962
114,295
89,796,067
70,055
295,266
537,296
902,617
148,890
88,744,560
$ 88,893,450
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION - FIDUCIARY FUND
Year Ended September 30, 2019
ADDITIONS
Contributions:
Employer
Plan members
Buybacks
State of Florida, insurance premiums
Total contributions
Investment income:
Net appreciation (depreciation) including realized gains/losses
Interest and dividends
Less: investment expenses
Net investment income (loss)
Other income
DEDUCTIONS
Benefits paid
DROP distributions
Administrative expenses
TOTAL ADDITIONS
TOTAL DEDUCTIONS
NET INCREASE IN NET POSITION
NET POSITION - BEGINNING
NET POSITION - ENDING
The accompanying notes are an integral part of this statement.
Page 12 of 112
Firefighters'
Pension
Fund
$ 2,769,139
1,027,420
37023
1,874:326
5,707,908
798,622
2,681,956
3,480,578
(307,697)
3,172,881
200
8,880,989
681,188
113,556
121,482
916,226
7,964,763
80,928,687
$ 88,893,450
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 13 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
North Collier Fire Control and Rescue District (the "District") is an independent
special taxing district located in Collier County, Florida. On January 1, 2015, the
North Collier Fire Control and Rescue District was officially formed by merging the
North Naples Fire Control and Rescue District and the Big Corkscrew Island Fire
Control and Rescue District. On February 6, 2014, the two Districts entered into an
Interlocal Agreement to merge. Each Board adopted a resolution identifying their
intent to initiate the voluntary merger process pursuant to Florida Statute Chapter
189.074. The two Districts created a proposed Joint Merger Plan which was
adopted by both Boards and ultimately put before the voters of each District by
referendum. On November 4, 2014, voters from both districts approved the
referendum to merge the two districts into one. On June 10, 2015, the Governor
signed into legislation the official enabling act of the new District via Laws of Florida
(LOF) Chapter 2015-191. The merger is intended to ensure the best possible
emergency response times, operational efficiencies and ensure long term sustainability
of the combined District. There was no impairment of capital assets as the result of
the merger, which was effective as of January 1, 2015 and no significant accounting
adjustment other than to combine the assets, liabilities and net position/fund balance
at January 1, 2015 of both Districts. The District has the general and special powers
prescribed by Florida Statute Chapters 189, 191 and 633.15. The District is
governed by a five (5) member elected Board of Commissioners. Commissioners
serve on a staggered four (4) year term basis.
The North Collier Fire Control and Rescue District provides fire control and
protection services, fire safety, inspections, code enforcement, fire hydrant
maintenance, firefighter training, and crash and fire rescue services as well as basic
and advanced life support services. In providing these services, the District operates
and maintains ten (10) stations and the related equipment and employs approximately
245 full-time professional firefighters and administrative staff.
During the year ended September 30, 2009, the North Naples Fire Control and
Rescue District entered into a joint venture agreement with Florida SouthWestern
State College (FSW) for the operation of the North Collier Fire Training Center
(NCFTC) to educate and train students as State Certified Firefighters. The North
Collier Fire Control and Rescue District is now licensed to operate the NCFTC and
FSW is the program coordinator. The District provides the training room and training
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 14 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Organization, continued
facilities for the NCFTC. FSW, as program coordinator, is responsible for the
operations of the NCFTC including but not limited to the screening and enrolling of
students and for screening and engaging instructors. Therefore, the activities of the
NCFTC are not included in the District's basic financial statements.
Reportine Entity
The District adheres to Governmental Accounting Standards Board (GASB)
Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by
GASB Statement Number 39, "Determining Whether Certain Organizations Are
Component Units" (GASB 39) and GASB Statement Number 61, "The Financial
Reporting Omnibus - An Amendment of GASB Statements No. 14 and No. 34"
(GASB 61).
This Statement requires the basic financial statements of the District (the primary
government) to include its component units, if any. A component unit is a legally
separate organization for which the elected officials of the primary government are
financially accountable. Based on the criteria established in GASB 14, as amended,
there are no component units required to be included or included in the District's
basic financial statements.
Government -wide Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the activities of the District and do
not emphasize fund types. These governmental activities comprise the primary
government. Fiduciary funds are properly not included in the government -wide
financial statements. General governmental and intergovernmental revenues support
the governmental activities. The purpose of the government -wide financial statements
is to allow the user to be able to determine if the District is in a better or worse
financial position than the prior year. The effect of all interfund activity between
governmental funds has been removed from the government -wide financial
statements.
Government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the pension fund
financial statements. Under the accrual basis of accounting, revenues, expenses,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 15 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Government -wide Financial Statements, continued
gains, losses, assets, and liabilities resulting from exchange and exchange -like
transactions are recognized when the exchange takes place. Revenues, expenses,
gains, losses, assets, and liabilities resulting from nonexchange transactions are
recognized in accordance with the requirements of GASB Statement Number 33,
"Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33).
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government -wide
financial statements rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government -wide financial statements rather than as
expenditures.
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1)
charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function, and 2) grants and
contributions that are restricted to meeting the operational or capital improvements of
a particular function. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Program revenues are considered to be revenues generated by services performed
and/or by fees charged such as inspection fees, burn permits, and hydrant tests.
Fund Financial Statements
The District adheres to GASB Number 54, "Fund Balance Reporting and
Governmental Fund Type Definitions" (GASB 54). Essentially, the implementation
resulted in adoption of a fund balance policy and reclassification of the components
within fund balance.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 16 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Fund Financial Statements, continued
The accounts of the District are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self -balancing accounts that comprise its assets, liabilities,
fund equity or net position, revenues, and expenditures or expenses, as appropriate.
Government resources are allocated to and accounted for in individual funds based
upon the purpose for which they are to be spent and the means by which spending
activities are controlled.
Fund financial statements for the District's governmental funds are presented after the
government -wide financial statements. These statements display information about
major funds individually and nonmajor funds in aggregate for governmental funds. The
fiduciary fund financial statement includes financial information for the Firefighters'
Pension Trust Fund. The fiduciary fund represents assets held by the District in a
custodial capacity for the benefit of other individuals.
Governmental Funds
When both restricted and unrestricted resources are combined in a fund,
expenditures are considered to be paid first from restricted resources, as appropriate,
and then from unrestricted resources. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are considered to be available when they are
collected within the current period or soon thereafter to pay liabilities of the current
period.
The District's major funds are presented in separate columns on the governmental
fund financial statements. The definition of a major fund is one that meets certain
criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and
Management's Discussion and Analysis - for State and Local Governments" (GASB
34). The funds that do not meet the criteria of a major fund are considered
non -major funds and are combined into a single column on the governmental fund
financial statements.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported in separate columns on the fund financial statements.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 17 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Governmental Funds, continued
In accordance with the District's enabling documents, separate budgets within the
General Fund are maintained for the North Naples (NN) Service Delivery Area and
the Big Corkscrew Island (BCI) Service Delivery Area. Separate budgets are
required for each service delivery area until such time as when one consistent millage
rate is adopted for both service delivery areas. As such, separate service delivery
area budget vs. actual comparison statements are included in the required
supplementary information and a combining schedule is included in the other
information section as the District must ultimately maintain and report a single General
Fund.
Fiduciary Fund
The Pension Trust Fund accounts for the activities of the Firefighters' Pension Trust
(FPT) Fund, which accumulates resources for the pension benefit payments to
qualified firefighters.
The net position of this fund is not considered to be part of the net position of the
District and is not available to the District's creditors.
Measurement Focus and Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the basic financial statements. Basis of
accounting relates to the timing of the measurements made, regardless of the
measurement focus applied.
The government -wide and fiduciary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 18 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Measurement Focus and Basis of Accounting, continued
Revenues are considered to be available when they are collectible within the current
period and soon enough thereafter to pay liabilities of the current period. For this
purpose, the District considers tax revenues to be available if they are collected
within sixty days of the end of the current fiscal period.
Revenues susceptible to accrual are interest on investments, and intergovernmental
revenues. Interest on invested funds is recognized when earned. Intergovernmental
revenues that are reimbursements for specific purposes or projects are recognized
when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
principal and interest on long-term debt, if any, is recognized when due; and (2)
expenditures are generally not divided between years by the recording of prepaid
expenditures.
Separate financial statements are provided for governmental funds and the fiduciary
fund, even though the latter are excluded from the government -wide financial
statements.
Non -current Government Assets/Liabilities
GASB 34 requires non -current governmental assets, such as land and buildings, and
non -current governmental liabilities, such as notes payable and capital leases, to be
reported in the governmental activities column in the government -wide Statement of
Net Position.
Maior Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the District (including both service delivery areas), except those
required to be accounted for in another fund.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 19 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Maior Funds, continued
The Impact Fee Fund (the District has one combined Impact Fee Fund) consists of
fees imposed and collected by Collier County based on new construction within each
service delivery area of the District. The fees are restricted and can only be used for
certain capital expenditures associated with growth within the District.
Non -Major Fund
The District reports the following non -major fund:
The Inspection Fee Fund is used by the District to account for the receipt and
expenditures of its Inspection and Plan Review Fee Programs. Fees are charged for
the inspection of new building construction and for fire code plan review. The fees
are collected by Collier County and are remitted to the District.
Fiduciary Fund
The Fiduciary Fund is excluded from the government -wide financial statements
because the resources of those funds are not available to support the District's
programs. The only type of fiduciary fund the District maintains is a Firefighters'
Pension Trust Fund, under Florida Statute Chapter 175, which accounts for
retirement assets held by the Plan that are payable to qualified firefighters upon
retirement.
Budgetary Information
The District has elected to report budgetary comparisons of its major funds and its
non -major fund as required supplementary information (RSI).
Investments
The District adheres to the requirements of GASB Statement Number 31,
"Accounting and Financial Reporting for Certain Investments and for External
Investment Pools," (GASB 31) in which all investments are reported at fair value.
Investments, including restricted investments, consist of certificates of deposit, U.S.
Government securities, corporate debt and equity securities, and securities of
government agencies unconditionally guaranteed by the U.S. Government.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 20 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Capital Assets
Capital assets, which include land, construction in progress, buildings, equipment and
vehicles, are reported in the government -wide Statement of Net Position.
The District follows a capitalization policy which calls for capitalization of all capital
assets that have a cost or donated value of $1,000 or more and have a useful life in
excess of one year.
All capital assets are valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated capital assets are valued at their estimated
fair market value on the date donated. Public domain (infrastructure) capital assets
consisting of certain improvements other than building, including curbs, gutters and
drainage systems, are not capitalized, as the District generally does not acquire such
assets. No debt -related interest expense is capitalized as part of capital assets in
accordance with GASB 34.
Maintenance, repairs and minor renovations are not capitalized. The acquisition of
land and construction projects utilizing resources received from Federal and State
agencies are capitalized when the related expenditure is incurred.
Expenditures that materially increase values, change capacities or extend useful lives
are capitalized. Upon sale or retirement, the cost is eliminated from the respective
accounts.
Expenditures for capital assets are recorded in the fund statements as current
expenditures. However, such expenditures are not reflected as expenditures in the
government -wide statements, but rather are capitalized and depreciated.
Depreciable capital assets are depreciated using the straight-line method over the
following estimated useful lives:
Capital Asset Years
Buildings 15-30
Capital Assets acquired under Capital Lease 6
Office Equipment 3-30
Vehicles 3-10
Equipment and Machinery 3-15
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 21 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Budgets and Budgetary Accounting
The District adopted separate annual General Fund budgets for each of the two (2)
service delivery areas within the District's General Fund.
The District adopted annual budgets for the Special Revenue Funds, including the
Impact Fee Fund and the Inspection Fee Fund.
No budget was adopted or required to be adopted for the Firefighters' Pension Trust
Fund.
The District follows these procedures in establishing budgetary data for the General
Fund, the Impact Fee Fund, and the Inspection Fee Fund:
1. During the summer of each year, the District Fire Chief submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
the upcoming October 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these basic financial statements, are as originally
adopted or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 22 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Budgets and Budgetary Accounting, continued
Several budget amendments were approved by the Board of Commissioners during
the year ended September 30, 2019. Budgeted revenues and expenditures were
increased (decreased) as follows:
Amount
General fund - NN SDA $ 2,738,253
General fund - BCI SDA 234,220
Total General Fund $ 2,972,473
Impact fee fund $ (526,331)
Inspection fee fund $ 35,199
Impact Fees/Deferred Revenue
The District levies an impact fee on new construction within the District. The intent of
the fee is for growth within the District to pay for capital improvements needed due to
the growth. The fee is imposed and collected by Collier County and remitted to the
District which accounts for impact fees collected by service delivery area. The fee is
refundable if not expended by the District within six (6) years from the date of
collection. The District, therefore, records this fee as restricted cash and as unearned
revenue until the date of expenditure, at which time it is recognized as revenue and
charged to capital outlay in the fund financial statements and capital assets in the
government -wide financial statements.
Net Position
In the government -wide financial statements, net position is identified as restricted
when there are externally imposed constraints as to its use, such as through debt
covenants, by grantors, or by law.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 23 of 1 l 2
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Fund Balances
The governmental fund financial statements the District maintains include
nonspendable, restricted, assigned, and unassigned fund balances. Nonspendable
fund balances are those that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.
Criteria include items that are not expected to be converted into cash, for example
prepaid expenses.
Restricted fund balances are those that are restricted by a third party such as
inspection fees. Restricted fund balances can only be spent for the stipulated
purposes.
The District's assigned fund balances are a result of official action of the District's
Board. The District's intent is to maintain a minimum assigned fund balance level of
three (3) months of budgeted total expenditures. The assigned fund balance includes
the District's operational and capital reserves as well as its disaster reserve. At
September 30, 2019, fund balance is also assigned for a variety of specific items by
District Board action. Any use of the assigned fund balance requires the District's
Board approval.
Due To/From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded
by funds affected in the period in which the transactions are executed.
Due From Other Governments
No allowance for losses on uncollectible accounts has been recorded since the
District considers all amounts to be fully collectible.
Indirect Costs
Expenses are allocated between service delivery areas on the same line item based
upon a Board approved cost allocation plan. For the year ended September 30,
2019, the costs were allocated on a percentage basis of 84.8% to NN SDA and
15.2% to BCI SDA.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 24 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Compensated Absences
The District's employees accumulate annual leave based on the number of years of
continuous service. Upon termination of employment, employees can receive
payment of accumulated annual leave if certain criteria are met. The costs of
accumulated annual leave benefits (compensated absences) are expended in the
respective operating funds when payments are made to employees. However, the
liability for all accrued vacation and personal leave benefits is recorded in the
government -wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because, at
present, it is not necessary in order to assure effective budgetary control or to
facilitate effective cash planning and control.
Management Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
Interfund Transactions
The District considers interfund receivables (due from other funds) and interfund
payables (due to other funds) to be loan transactions to and from other funds to cover
temporary (three months or less) cash needs. Transactions that constitute
reimbursements to a fund for expenditures/expenses initially made from it that are
properly applicable to another fund are recorded as expenditures/expenses in the
reimbursing funds and as reduction of expenditures/expenses in the fund that is
reimbursed. Such amounts are eliminated in the government -wide financial
statements.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 25 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Pensions
In the government -wide statement of net position, liabilities are recognized for the
District's proportionate share of each pension plan's net pension liability. For
purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the Firefighters' Pension Fund (FPF), the Florida
Retirement System (FRS) and the Health Insurance Subsidy (HIS) defined benefit
plan and additions to/deductions from fiduciary net position have been determined on
the same basis as they are reported by the Plans. For this purpose, benefit payments,
(including refunds of employees' contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value for the
FPF.
The District's retirement plans and related amounts are described in a subsequent
note.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for
deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to future
periods and so will not be recognized an as outflow of resources
(expense/expenditure) until then. The deferred amount on pensions is reported only
in the government -wide Statement of Net Position. The deferred outflows of
resources related to pensions and OPEB are discussed in a subsequent note.
In addition to liabilities, the statement of net position reports a separate section for
deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future
period and so will not be recognized as an inflow of resources (revenue) until that
time. The deferred amount on pensions is reported only in the government -wide
Statement of Net Position. A deferred amount on pension results from the difference
in the expected and actual amounts of experience, earnings, and contributions. This
amount is deferred and amortized over the service life of all employees that are
provided with pensions and OPEB through these plans except earnings which are
amortized over five to seven years.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 26 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Reclassifications
Certain amounts in the financial statements have been reclassed to conform with the
current presentation. These reclassifications had no effect on the results of operations
or fund equity.
Subsequent Events
Subsequent events have been evaluated through June 2, 2020, which is the date
the basic financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
Cash and cash equivalents of the primary government (exclusive of the Firefighters'
Pension Trust Fund) were $7,503,254 of which $700,081 was restricted at
September 30, 2019. Total cash and cash equivalents included cash on hand of
$1,300 at September 30, 2019.
Deposits
The District's deposit policy (exclusive of the Firefighters' Pension Fund) allows
deposits to be held in demand deposit and money market accounts and is consistent
with Florida Statutes, Chapter 218.415(17). All District depositories are institutions
designated as qualified depositories by the State Treasurer at September 30, 2019.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 27 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Deposits, continued
Deposits consist of the following at September 30, 2019:
District
Carrying
Bank
Amount
Balance
Unrestricted
General Fund
Depository Accounts
$ 6,714,028
$ 7,053,912
Money Market
87,845
87,845
Total General Fund
$ 6,801,873
$ 7,141,757
Restricted
General Fund
Depository Accounts
$ -
$ -
Special Revenue Funds
Impact Fee
Depository Accounts
Inspection Fee
Depository Accounts
Total Special Revenue Funds
Total Restricted Funds
480,216 480,216
219,865 212,038
700,081 692,254
$ 700,081 $ 692,254
The District's deposits were entirely covered by federal depository insurance or by
collateral pursuant to the Public Depository Security Act (Florida Statute 280) of
the State of Florida. Bank balances approximate market value.
The District held no other types of deposits during the year ended September 30,
2019.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 28 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Restricted Cash and Equivalents
The following is a brief description of the restrictions on cash and cash equivalents:
The Impact Fee account is used to account for the deposit of impact fees received
by both service delivery areas and are restricted for certain capital asset acquisition
associated with growth within the District. Impact fees are collected by Collier
County for the District pursuant to County ordinance and District resolution.
The Inspection Fee account is used to account for inspection fees collected for
performing new construction fire inspections within the District. Such revenue is
restricted for inspection service related costs.
NOTE C - INVESTMENTS
District
Florida Statutes and the District's investment policy authorize investments in the
Florida Fixed Income Trust (FL FIT). Specifically, the District's investment policy is
consistent with Florida Statutes, Chapter 218.415(17). At September 30, 2019, the
District's investments in the FL FIT -Cash Pool (CP) consist of the following:
Fair Value (NAV)/
Cost Carrying
Basis Amount
General Fund
Florida Fixed Income Trust
FL FIT - Cash Pool (CP) $ 7,265,674 $ 7,265,674
Impact Fee Fund
Florida Fixed Income Trust
FL FIT - Cash Pool (CP) $ 251,044 $ 251,044
Total investments $ 7,516,718 $ 7,516,718
The Florida Fixed Income Trust (FL FIT) Cash Pool (CP) is an external 2a7-like
investment pool, which is self administered. The Florida Fixed Income Trust (FL
FIT) Cash Pool (CP) is not categorized as it is not evidenced by securities that exist
in physical or book entry form. The Florida Fixed Income Trust (FL FIT) Cash Pool
are stated at a net asset value (NAV) which approximates fair value, NAV = $1.00.
These investments are subject to the risk that the market value of an investment,
collateral protecting a deposit or securities underlying an investment will decline and
lose value.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 29 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
District, continued
FL FIT is not required to register (and has not registered) with the SEC; however,
the fund is an external investment pool that has historically adopted operating
procedures consistent with those required by Florida Statutes.
The District's investment in the Florida Fixed Income Trust (FL FIT) Cash Pool (CP)
represented approximately .66% of the Fund's total investments.
At June 30, 2019, 100% of the Cash Pool's investments consisted of commercial
paper.
These short-term investments are stated at fair value. Investment income is recognized
as earned and is allocated to participants of the Fund based on their equity
participation.
The District adheres to GASB Statement No. 79 and where the Fund meets the
criteria to make GASB Statement No. 31 which requires the following disclosures
related to its FL FIT Cash Pool investment:
Limitation on Participant Contributions and Withdrawals: FL FIT -Cash Pool
has no limitations or restrictions on participant withdrawals, does not charge
liquidity fees, and has not put in place a redemption gate. Each participant has
the ability to withdraw 100 percent of its account balance any business day that
the Investment Advisor is open for trading, the funds will settle trading date plus
one business day (T+l ).
Investment Income, Unrealized Gains/Losses, and Realized Gains/Losses: FL
FIT -Cash Pool follows industry practice and records security transactions on a
trade date basis. Dividend and interest income is recognized on an accrual
basis. Net investment income is distributed to participants at least monthly.
Unrealized and realized gains and losses, if any, are distributed to participants on
a daily and monthly basis. Distributions to participants are recorded on the
ex -dividend date.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 30 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
District, continued
Valuation: Fair value of the investments in the FL FIT -Cash Pool is determined
on a daily basis. Fair value increases and decreases are included in the change
in unrealized gains and losses during the period. Net realized gains and losses
on sales of securities are computed based on specific identification. Mutual fund
securities are recorded at fair value as determined by using net position value as
furnished by a pricing service and the number of shares owned.
Redemption Gates: Per the Administrator there are no redemption gates.
Liquidity Fees: Per the Administrator there are no liquidity fees.
Redemption Fees: As of September 30, 2019, there were no redemption fees
or maximum transaction amounts, or any other requirements that serve to limit
a participant's daily access to 100 percent of their account value.
Fair Value: The carrying value of the investments held by the District
approximate fair value. However, it is the opinion of the management of Florida
Fixed Income Trust (FL FIT) it is exempt from GASB Statement No.72
financial hierarchy disclosures.
Foreign Currency Risk: Florida Fixed Income Trust (FL FIT) Cash Pool is not
exposed to foreign currency risk.
Securities Lending: Florida Fixed Income Trust (FL FIT) Cash Pool did not
participate in securities lending program during the period October 1, 2018
through September 30, 2019.
Florida Fixed Income Trust (FL FIT) Cash Pool does provide separate audited
financial statements for the year ended June 30, 2019.
At September 30, 2019, the District reported Florida Fixed Income Trust (FL FIT)
Cash Pool investments of $7,516,718. The Florida Fixed Income Trust (FL FIT)
Cash Pool carried a credit rating of AAAf/S1+ by Standard and Poors and had a
dollar weighted average days to maturity (WAM) of 135 days at September 30,
2019. The Cash Pool's duration is as follows: expected target duration 0-.50 years;
effective duration .25 years. Rule 2a7 allows funds to use a constant of $1.00 per
share.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 31 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments
Investments held in the Firefighters' Pension Trust Fund (the "Plan") totaled
$89,604,790 (including $1,391,175 in cash and cash equivalents, $4,377,192 in
mutual funds, $60,815,235 in equity securities, $16,385,064 in fixed income
securities, and $6,636,124 in real estate) at September 30, 2019. Such investments
are administered in accordance with Firefighters' Pension Board policy. This policy
provides for investments in cash and cash equivalents, money markets, mutual funds,
equities, treasury notes, federal agency guaranteed securities, corporate bonds, notes
and/or equities and real estate.
The Firefighters' Pension Trust Fund accounts for resources held to fund the
respective firefighter employee pension benefits.
The Firefighters' Pension Trust Fund investments were held by a financial and
investment institution and are subject to certain insurances up to limits specific to the
trustee/custodian institution and retirement trust funds. These assets are subject to
loss of principal.
Investment Authorization:
The Plan's investment policy is determined by the Plan's Board of Trustees. The
policy has been designed by the Board to conduct the operations of the Plan in a
manner so that the assets will provide the pension and other benefits provided under
applicable laws. As such, the policy is designed by the Board to maximize the Plan's
asset value, while assuming risk that is consistent with the Board's risk tolerance. The
Trustees are authorized to acquire and retain every kind of property (real, personal or
mixed) and every kind of investment specifically including, but not by way of
limitation, money markets, mutual funds, bonds, debentures, stocks (preferred or
common) and other corporate obligations. Investments are carried at fair value at
September 30, 2019. Interest and dividend revenues are recorded as earned.
Purchases and sales of investments are recorded on the trade -date basis.
Unrealized gains and losses are presented as net appreciation (depreciation) in fair
value of investments on the statement of changes in fiduciary net position along with
gains and losses realized on sales of investments.
Given the inherent nature of investments, it is reasonably possible that changes in the
value of those investments will occur in the near term and that such changes could
materially affect the amounts reported (loss of principal).
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 32 of 1 l 2
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Investment Authorization, continued:
Investment in all equity securities shall be limited to those listed on a major U.S. stock
exchange and limited to no more than 80% (at market) of the Plan's total asset value.
The equity position in any one company shall not exceed 5% of the Plan's total assets
at market. Investments in stock of foreign companies shall be limited to 35% of the
value of the Plan's total assets at market.
The fixed income portfolio shall be compromised of securities with a quality rating of
investment grade or higher by a major rating service. Except for Treasury and
Agency obligations, the debt portion of the Plan shall contain no more than 10% of a
given issuer irrespective of the number of differing issues.
The current target allocation at September 30, 2019, of these investments at market is as
follows:
Investment
Long Term
Authorized
Policy -Target
Expected Real
Investments
Allocation %
Rate Return %
Domestic Equities
35-55%
7.5%
Fixed Income
15-40%
2.5%
TIPS
0-10%
Not Available
Real Estate
0-15%
4.5%
International Equities
10-25%
8.5%
International Fixed Income
0-10%
3.5%
Global Tactical Asset Allocation
0-15%
3.5%
Cash and Cash Equivalents
Minimal
Minimal
Interest Rate Risk:
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to change in market interest rates. As a means of
limiting its exposure to interest rate risk, the Plan diversifies its investments by security
type and institution, and limits holdings in any one type of investment with any one
issuer with various durations of maturities.
Information about the sensitivity of the fair values of the Plan's fixed income
investments to market interest rate fluctuations is provided by the following table that
shows the distribution of the Plan's investment by maturity at September 30, 2019:
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 33 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Investment Maturities (in gars)
Investment Type
Fair Value Less than 1
1 to 5
6 to 10
More than 10
Corporate bonds
$ 8,408,815 $ - $
2,761,579
$ 3,691,695
$ 1,955,541
Mutual funds
4,377,192 -
4,007,319
331,791
38,082
U.S. Agencies
5,510,282 -
-
61,620
5,448,662
U.S. Treasuries
2,465,967 -
-
-
2,465,967
$ 20,762,256 $ - $
6,768,898
$ 4,085,106
$ 9,908,252
Credit Risk:
Credit risk is the risk that a security or a portfolio will lose some or all of its value due
to a real or perceived change in the ability of the issuer to repay its debt. The Plan's
investment policy utilizes portfolio diversification in an effort to mitigate this risk.
The following table discloses credit rating by fixed income investment type at
September 30, 2019, if applicable:
Fair
Percentage of
Value
Portfolio
Quality rating of credit risk debt securities
A
$ 1,011,131
1.15 %
Al
321,016
0.36
A2
1,044,975
1.18
A3
2,038,779
2.31
AA
235,493
0.27
Aal
37,722
0.04
Aa2
273,012
0.31
Aa3
164,105
0.19
AAA
4,558,190
5.17
B
92,359
0.10
Bal
29,967
0.03
Baal
2,313,974
2.62
Baal
1,380,631
1.57
Baa3
694,939
0.79
BB
557,217
0.63
BBB
1,110,931
1.26
Unrated government securities
4,897,815
5.55
Total credit risk debt securities
S 20.762,256
23.53 %
* Obligations of the U.S. government or obligations explicitly guaranteed by the U.S.
government are not considered to have credit risk and do not have purchase limitations.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 34 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Firefishters' Pension Plan - Investments, continued
Concentration of Credit Risk:
The investment policy of the Plan contains limitations on the amount that can be
invested in any one equity issuer as well as maximum portfolio allocation percentages.
There were no individual equity investments that represented 5% or more of Plan net
position at September 30, 2019. In addition, the Plan contains limitations on the
amount that can be invested in any one debt issuer, except for the debt securities
issued by the U.S. Government. There were no investments in non-U.S. Government
debt securities that represented 10% or more of Plan net position at September 30,
2019.
Custodial Credit Risk:
This is the risk that in the event of the failure of the counterparty, the plan will not be
able to recover the value of its investments or collateral securities that are in the
possession of an outside party. This risk is generally measured by the assignment of a
rating by a nationally recognized statistical rating organization. Consistent with the
Plan's investment policy, the investments are held by the Plan's custodial bank and
registered in the Plan's name.
Foreign Currency Risk:
This is the risk that fluctuations in currency exchange rate may affect transactions
conducted in currencies other than U.S. Dollars and the carrying value of foreign
investments. The Plan's primary exposure to foreign currency risk is derived from its
direct investments in international equity and fixed income mutual funds. The Plan
owns shares in international equity and international bond funds. In accordance with
the Plan's investment policy statement, the US equity and fixed income separate
account managers may invest in individual securities designated as foreign as part of
the normal course of the investment process. The individual foreign securities may be
American Depository Receipts, or NYSE common stock, both transacted in US
dollars, or foreign ordinary securities transacted in foreign currency. The investment
policy limits the foreign investments to no more than 35% of the Plan's investment
balance in equities and no more than 10% in fixed income. As of September 30,
2019, the Plan's exposure to foreign currency risk related to foreign equity funds and
bonds is as follows:
Fair Percentage of
Value Portfolio
International equity funds and fixed income (bonds) $ 19,713,054
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 35 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Fair Value Measurements:
Fair value is defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the
measurement date. The Plan categorizes its fair value measurements within the fair
value hierarchy as established by generally accepted accounting principles. The fail
value hierarchy categorizes the inputs to valuation techniques used to measure fair
value into three levels based on the extent to which inputs used in measuring fair value
are observable in the market as follows:
Level 1 - Inputs to the valuation methodology are based upon quoted prices for
identical assets in active markets.
Level 2 - Inputs to the valuation methodology are based upon observable inputs for
the assets either directly or indirectly, other than those considered Level 1 inputs.
which may include quoted prices for identical assets in markets that are not
considered to be active, and quoted prices of similar assets in active or inactive
markets.
Level 3 - Inputs to the valuation methodology are based upon unobservable inputs.
Following is a description of the valuation methodologies used for asset measured at
fair value.
Common stock: Valued at the closing price reported on the New York Stock
Exchange.
Government securities: Valued using pricing models maximizing the use of
observable inputs for similar securities.
Mutual funds: Valued at the daily closing price as reported by the Plan. Mutual
funds held by the Plan are open-ended mutual funds that are registered with the
Securities and Exchange Commission. These funds are required to publish their
daily net asset value (NAV) and to transact at that price. The mutual funds held
by the Plan are deemed to be actively traded.
Corporate bonds: Valued using pricing models maximizing the use of observable
inputs for similar securities. This includes basing the value on yields currently
available on comparable securities of issuers with similar credit ratings. When
quoted prices are not available for identical or similar bonds, the bond is valued
under a discounted cash flows approach that maximizes observable inputs, such
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 36 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Fair Value Measurements, continued:
as current yield of similar instruments, but included adjustments for certain risks
that may not be observable, such as credit and liquidity risks or a broker quote, if
available.
Real estate: Valued at the net asset value of shares held by the Plan at year end.
The Plan has investments in private market real estate investments for which no
liquid public market exists.
The following table presents the Plan's fair value hierarchy for investments at fair
value as of September 30, 2019:
Fair Value Measurements Using
Quoted
Prices in
Significant
Active
Other Significant
Markets for
Observable Unobservable
Identical Assets
Inputs Inputs
Total
(Leven)
(Level2) (Level3)
Investments by fair value level
Equity securities:
Common stocks $
16,814,175
$ 16,814,175
$ $
Foreign stocks
1,707,630
1,707,630
Domestic equity mutual funds
29,896,495
-
29,896,495
International equity mutual funds
12,396,935
12,396,935
REIT
-
-
Total equity securities
60,815,235
18,521,805
42,293,430
Debt securities
U.S. treasury securities
2,465,967
U.S. agency securities
5,510,282
Corporate bonds
8,408,815
Fixed income mutual funds
4,377,192
Total debt securities
20,762,256
Total investments by fair value
81,577,491
Investments measured at the net asset value (NAV)
Real estate fund 6,636,124
Money market funds (exempt) 1,391,175
Total investments $ 89,604,790
2,465,967 -
- 5,510,282
8,408,815
4,377,192
2,465,967 18,296,289
$ 20,987,772 $ 60,589,719 $
* As required by GAAP, certain investments have not been classified in the fair value hierarchy. The fair
value amounts presented in the previous table are intended to permit reconciliation for the fair value
hierarchy to the total investment line item in the Statement of Fiduciary Net Position.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 37 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Fair Value Measurements, continued:
The following table summarizes investment for which fair value is measured using the
net asset value per share practical expedient, including their relate unfunded
commitments and redemption restrictions:
Investments measured at the NAV
Redemption
Unfunded Frequency (if Redemption
Fair Value Commitments Currently Eligible Notice Period
Real estate fund $ 6,636,124 $ Quarterly 90 Days
Real estate fund: The fund is an open-ended real estate investment fund investing
primarily in core institutional office, retail, industrial, and multi -family properties
located throughout the United States. The investment is valued at NAV and its
redemption must be received by the fund 90 days prior to quarter end.
NOTE D - DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2019, are as follows:
Due from Due to
Fund Other Funds Other Funds
General Fund:
Impact Fee Fund
Inspection Fee Fund
Total General Fund
Special Revenue Funds:
Impact Fee Fund
General Fund
Inspection Fee fund
Inspection Fee Fund
General Fund
Impact Fee Fund
Total Special Revenue Funds
Total
$ 34,657 $
148,713
183,370 -
- 34,657
148,713
- 183,370
$ 183,370 $ 183,370
Interfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at September 30, 2019.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 38 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE E - CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the year ended
September 30, 2019:
Balance Balance
October I Increases/ Decreases/ Adjustments/ September 30
2018 Additions Retirements Reclassifications 2019
Capital Assets Not
Being Depreciated:
Land $ 15,712,989 $
Construction in progress 1,317,631 L800
Total Capital Assets Not
Being Depreciated 17,030,620 1,800
Capital Assets
Being Depreciated:
$ 15,712,989
1,319,431
17,032,420
Assets held under capital lease
3,612,747
445,486 -
-
4,058,233
Buildings
20,674,645
125,258 -
-
20,799,903
Office equipment
1,222,924
185,795 -
15,997
1,424,716
Vehicles
8,926,075
- (178,963)
41,049
8,788,161
Equipment & machinery
3,821,928
128,893 (39,498)
46,017
3,957,340
Total Capital Assets
Being Depreciated
38,258,319
885,432 (218,461)
103,063
39,028,353
Less Accumulated
Depreciation:
Assets held under capital lease
(586,213)
(360,829)
-
(947,042)
Buildings
(7,635,683)
(768,641)
- -
(8,404,324)
Office equipment
(678,883)
(128,127)
- (15,997)
(823,007)
Vehicles
(6,933,206)
(392,811)
178,963 (41,049)
(7,188,103)
Equipment & machinery
(2,836,616)
2( 68,434)
38,404 (46,017)
(3,112,663)
Total Accumulated Depreciation
(18,670,601)
1,918,842
217,367 (103,063)
(20,475,139)
Total Capital Assets being
Depreciated, Net 19,587,718 (1,033,410) (1,094) - 18,553,214
Capital Assets, Net $ 36,618,338 $ 1,031,610 $ (1,094) $ - 35,585,634
Related Debt (3,074,490)
Net investment in capital assets $ 32.511,144
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE E - CAPITAL ASSETS ACTIVITY, CONTINUED
Depreciation expense was charged to the following functions during the year ended
September 30, 2019:
Amount
General Government
Total Depreciation Expense $1,918,842
The District has capital assets held under capital leases with a total cost of
$4,058,233 at September 30, 2019. The capital assets held under capital lease has
accumulated depreciation of $947,042 and depreciation expense of $360,829
for the year ended September 30, 2019.
NOTE F - LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the year ended
September 30, 2019:
Net OPEB Liability
Net Pension Liability - FRS
Net Pension Liability - HIS
Net Pension Liability - FPT
Capital Leases
Note Payable - Land
Compensated Absences
Balance
October 1
2018
Additions
$10,173,608
$ -
9,462,215
-
2,012,375
-
3,173,662
5,185,436
2,808,073
445,486
287,500
-
2,074,495
-
$29,991,928
$ 5,630,922
Retirements
Balance
And
September 30
Adjustments
2019
$ (1,279,655)
$ 8,893,953
(83,428)
9,378,787
(151,121)
1,861,254
-
8,359,098
(409,069)
2,844,490
(57,500)
230,000
(10,325)
2,064,170
$ 1,991,098 $33,631,752
The following is a summary of long-term obligations at September 30, 2019:
Net OPEB liability - actuarially determined - GASB No. 75
Net pension liability - FRS pension plan. This amount is actuarially determined
through calculation based upon the audited financial statements of the Florida FRS
Plan.
Net pension liability - HIS plan. This amount is actuarially determined through
calculation based upon the audited financial statements of the Florida FRS Plan.
Page 39 of 112
Amounts
Due Within
One Year
474,649
57,500
$ 532,149
Amount
$ 8,893,953
9,378,787
1,861,254
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE F - LONG-TERM OBLIGATIONS, CONTINUED
Net pension liability - Firefighters' Pension Trust (FPT) plan. This
amount is actuarially determined through calculation based upon the audited
financial statements of the FPT Plan.
$445,486 capital lease payable dated May 20, 2019, for radio equipment to
a financial institution over a 7 year period ending June 1, 2026 in equal
annual payments of $77,900 at a 5.2% fixed interest rate.
$2,546,268 capital lease payable dated January 15, 2016 for one (1) ladder
truck and three (3) pumper trucks payable to a financial institution in ten
(10) annual payments of $295,233 ending December 14, 2025 including
interest at 2.822%.
$888,147 capital lease payable beginning May 1, 2018 for a ladder truck
payable to a financial institution in five (5) annual payments of $192,494
ending May 1, 2022 including interest at 2.74%.
$1,150,000 note payable dated January 1, 2003 to SunTrust Bank over a
20 year period ending November 1, 2022 in equal annual principal
payments on November 1 of $57,500 plus accrued interest at a fixed rate
of 3.75%. The note is collateralized by Impact Fees.
Page 40 of 1 ] 2
Amount
8,359,098
445,486
1,851,781
547,223
230,000
Non -current portion of compensated absences. Employees of the District
are entitled to paid vacation based on length of service and job
classification. (Combined SDA) 2,064,170
33,631,752
Less Current Portion (532,149)
Long -Term Portion $ 33,099,603
The annual debt service requirements at September 30, 2019, were as follows:
Capital
Capital
Years Ending
Leases Payable
Leases Payable
September 30
Principal (1)
Principal (1)
2020
$ 54,175
$ 242,974
2021
57,060
249,831
2022
60,099
256,881
2023
63,299
264,131
2024
66,671
271,585
2025 - 2026
144,182
566,379
$ 445,486
$ 1.851,781
Net OPEB Liability
Net Pension
Liability - FRS
Net Pension Liability - HIS
Net Pension Liability - FPT
Compensated absences
Total long-term debt
Capital
Note
Leases Payable
Payable
Total
Principal (1)
Principal (2)
Principal
$ 177,500
$ 57,500
$ 532,149
182,363
57,500
546,754
187,360
57,500
561,840
-
57,500
384,930
-
-
338,256
-
-
710,561
$ 547,223
$ 230,000
3,074,490
8,893,953
9,378,787
1,861,254
8,359,098
2,064,170
(1) Debt service paid through General Fund
(2) Debt service paid through Impact Fee Fund
Interest expense for the year ended September 30, 2019, was $124,476 including interest expense
on capital lease of $78,655.
$ 33,631,752
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 41 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS
The following three retirement plans have been established by the District:
Plan 1 - Florida Retirement System (FRS)
Plan 2 - Firefighters' Pension Trust Fund (Florida Statute 175)
Plan 3 - 401(a) Plan
Employee participation in a specific plan is based on the respective employee's
original hire date.
General Information about the Florida Retirement System
The Florida Retirement System ("FRS") was created in Chapter 121, Florida
Statutes. The FRS was created to provide a defined benefit pension plan ("Pension
Plan") for participating public employees. All District employees are participants in
the Statewide Florida Retirement System (FRS) under authority of Article X, Section
14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS
was amended in 1998 to add the Deferred Retirement Option Program ("DROP")
under the defined benefit plan and amended in 2000 to provide an integrated defined
contribution plan alternative to the defined benefit plan for FRS members effective
July 1, 2002. This integrated defined contribution pension plan is the FRS Investment
Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance
Subsidy (HIS) Program, a separate cost -sharing, multiple -employer defined benefit
pension plan to assist retired members of any State -administered retirement system in
paying the costs of health insurance.
Essentially all regular employees of the District are eligible to enroll as members of the
State -administered FRS. Provisions relating to the FRS are established by Chapters
121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238,
Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Florida
Administrative Code; wherein eligibility, contributions, and benefits are defined and
described in detail. Such provisions may be amended at any time by further action
from the Florida Legislature. The FRS is a single retirement system administered by
the Florida Department of Management Services, Division of Retirement, and
consists of two cost -sharing, multiple -employer defined benefit plans (Pension and
HIS Plans) and other nonintegrated programs. A comprehensive annual financial
report of the FRS, which includes its financial statements, required supplementary
information, actuarial report, and other relevant information dated June 30, 2019, is
available from the Florida Department of Management Services' Website
(www.dms.myflorida.com).
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 42 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
General Information about the Florida Retirement System, continued
The District's total FRS and HIS pension expense was $1,725,600 for the year
ended September 30, 2019 and is recorded in the government -wide financial
statements. Total District actual FRS and HIS retirement contribution expenditures
were $954,512, $981,054 and $1,203,482 for the years ended September 30,
2019, 2018 and 2017, respectively. The District contributed 100% of the required
contributions.
FRS Pension Plan
Plan Description. The FRS Pension Plan ("Plan") is a cost -sharing, multiple -
employer defined benefit pension plan, with a Deferred Retirement Option Program
(DROP) for eligible employees. The general classes of membership are as follows:
Regular Class - Members of the FRS who do not qualify for membership in the
other classes.
Senior Management Service Class (SMSC) - Members in senior management
level positions.
Special Risk Class - Members who are employed as certified firefighters and
meet the criteria to qualify for this class.
Elected Officials - Members who are elected by the voters within the District
boundaries.
Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable
service and employees enrolled in the Plan on or after July 1, 2011, vest at eight
years of creditable service. All vested members, enrolled prior to July 1, 2011, are
eligible for normal retirement benefits at age 62 or at any age after 30 years of
service, except for those members classified as special risk who are eligible for
normal retirement benefits at age 55 or at any age after 25 years of service. All
members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for
normal retirement benefits at age 65 or any time after 33 years of creditable service,
except for members classified as special risk who are eligible for normal retirement
benefits at age 60 or at any age after 30 years of service. Members of both Plans
(Pension and HIS) may include up to 4 years of credit for military service toward
creditable service. The Plan also includes an early retirement provision; however,
there is a benefit reduction for each year a member retires before his or her normal
retirement date. The Plan provides retirement, disability, death benefits, and annual
cost of living adjustments to eligible participants.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 43 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan. continued
DROP, subject to provisions of Section 121.091, Florida Statutes, permits
employees eligible for normal retirement under the Plan to defer receipt of monthly
benefit payments while continuing employment with an FRS employer. An employee
may participate in DROP for a period not to exceed 60 months after electing to
participate. During the period of DROP participation, deferred monthly benefits are
held in the FRS Trust Fund and accrue interest. The net pension liability does not
include amounts for DROP participants, as these members are considered retired and
are not accruing additional pension benefits.
Benefits Provided. Benefits under the Plan are computed on the basis of age,
and/or years of service, average final compensation, and credit service. Credit for
each year of service is expressed as a percentage of the average final compensation.
For members initially enrolled before July 1, 2011, the average final compensation is
the average of the five highest fiscal years' earnings; for the members initially enrolled
on or after July 1, 2011, the average final compensation is the average of the eight
highest fiscal years' earnings. The total percentage value of the benefit received is
determined by calculating the total value of all service, which is based on retirement
plan and/or the class to which the member belonged when the service credit was
earned. Members are eligible for in -line -of -duty or regular disability and survivors'
benefits. The following chart shows the percentage value of each year of service
credit earned:
Class, Initial Enrollment, and Retirement Age/Years of Service
%Value
Regular Class and elected members initially enrolled before July 1, 2011
Retirement up to age 62, or up to 30 years of service
1.60
Retirement at age 63 or with 31 years of service
1.63
Retirement at age 64 or with 32 years of service
1.65
Retirement at age 65 or with 33 or more years of service
1.68
Regular Class and elected members initially enrolled on or after July 1, 2011
Retirement up to age 65 or up to 33 years of service
1.60
Retirement at age 66 or with 34 years of service
1.63
Retirement at age 67 or with 35 years of service
1.65
Retirement at age 68 or with 36 or more years of service
1.68
Special Risk Regular
Service from December 1, 1970 through September 30, 1974
2.00
Service on or after October 1, 1974
3.00
Senior Management Service Class
2.00
Elected Officers' Class
3.00
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 44 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in
the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011,
the annual cost -of -living adjustment is 3 percent per year. If the member is initially
enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is
an individually calculated cost -of -living adjustment. The annual cost -of -living
adjustment is a proportion of 3 percent determined by dividing the sum of the
pre -July 2011 service credit by the total service credit at retirement multiplied by 3
percent. Plan members initially enrolled on or after July 1, 2011, will not have a
cost -of -living adjustment after retirement.
Contributions. The Florida Legislature establishes contribution rates for
participating employers and employees. Contribution rates during the year ended
September 30, 2019 were as follows:
Florida Retirement System, Regular
Florida Retirement System, Senior Management Service
Florida Retirement System, Special Risk
Deferred Retirement Option Program - Applicable
to Members from All of the Above Classes
Florida Retirement System, Reemployed Retiree
Florida Retirement System, Elected Official
Percent of Gross Salary*
Employee Employer (1) Employer (3)
3.00 8.47 8.26
3.00 25.41 24.06
3.00 25.48 24.50
0.00 14.60 14.03
(2) N/A N/A
3.00 48.82 48.70
Notes:
(1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/19 - 6/30/20.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/18 - 6/30/19.
* As defined by the Plan.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 45 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
Pension Liabilities, Pension Expense, Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the Pension Plan. At
September 30, 2019, the District reported an FRS pension liability of $9,378,787
for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2019, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2019.
The District's proportionate share of the net pension liability was based on the
District's 2018-19 fiscal year contributions relative to the total 2018-19 fiscal year
contributions of all participating members. At September 30, 2019, the District's
proportionate share was .027233351 percent, which was a decrease of .004181165
percent from its proportionate share measure as of September 30, 2018.
For the year ended September 30, 2019, the District recognized FRS pension
expense of $1,604,808. In addition, the District reported deferred outflows of
resources and deferred inflows of resources related to the pension from the following
sources:
Deferred Outflows
Deferred Inflows
Description
of Resources
of Resources
Differences between expected
and actual experience
$ 556,283
$ 5,820
Change of assumptions
2,408,876
-
Net difference between projected and
actual earnings on pension plan investments
-
518,883
Changes in proportion and differences between
District contributions and proportionate share
of contributions
697,477
2,536,351
District contributions subsequent to the
measurement date
202,510
-
Total
$ 3,865,146
$ 3,061,054
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 46 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
The deferred outflows of resources related to the FRS pension, totaling $202,510
resulting from District contributions subsequent to the measurement date, will be
recognized as a reduction on the net pension liability in the fiscal year ended
September 30, 2020. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the pension will be recognized in pension
expense over the remaining service period of 6.4 years as follows:
Fiscal Years Ending
September 30
Amount
2020
$ 77,771
2021
77,771
2022
77,771
2023
77,772
2024
207,492
Thereafter
83,005
Total
$ 601,582
Actuarial Assumptions. The total pension liability in the July 1, 2019, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Measurement date
Inflation
Real payroll growth
Salary increases
Investment rate of return
Actuarial cost method
June 30, 2019
2.60 percent
0.65 percent
3.25 percent, average, including inflation
6.90 percent, net of pension plan
investment expense, including inflation
Individual entry age
Mortality rates were based on the Generational RP-2000 with Projection Scale BB.
The actuarial assumptions used in the July 1, 2019, valuation were based on the
results of an actuarial experience study for the period July 1, 2013 through June 30,
2018.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 47 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
The long-term expected rate of return on pension plan investments was not based on
historical returns, but instead is based on a forward -looking capital market economic
model. The allocation policy's description of each asset class was used to map the
target allocation to the asset classes shown below. Each asset class assumption is
based on a consistent set of underlying assumptions, and includes an adjustment for
the inflation assumption. The target allocation and best estimates of arithmetic and
geometric real rates of return for each major asset class are summarized in the
following table:
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation (1)
Return
Return
Deviation
Cash
1%
3.3%
3.3%
1.2%
Fixed income
18%
4.1%
4.1%
3.5%
Global equity
54%
8.0%
6.8%
16.5%
Real estate (property)
10%
6.7%
6.1%
11.7%
Private equity
11%
11.2%
8.4%
25.8%
Strategic investments
6%
5.9%
5.7%
6.7%
Total 100%
Assumed inflation - Mean 2.6% 1.7%
(1) As outlined in the Plan's investment policy
Money -weighted Rate of Return. The annual money -weighted rate of return on
FRS Pension Plan investments was 5.98%
Discount Rate. The discount rate used to measure the total pension liability
was 6.90 percent. The Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculating the total pension liability is equal to the
long-term expected rate of return.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 48 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
Sensitivity of the District's Proportionate Share of the Net Pension Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net pension liability calculated using the discount rate of
6.90 percent which was reduced from 7.00%, as well as what the District's
proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (5.90 percent) or 1-percentage-point
higher (7.90 percent) than the current rate:
1 % Current 1 %
Decrease Discount Rate Increase
(5.90%) (6.90%) (7.90%)
District's proportionate share of
the net pension liability $ 16,212,800 $ 9,378,787 $ 3,671,231
Pension Plan Fiduciary Net Position. Detailed information about the pension plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Systems Comprehensive Annual Financial Report (FRS "CAFR")
dated June 30, 2019.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2019, the District reported a
payable of $0 for the outstanding amount of contributions in the pension plan.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 49 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan
Plan Description. The Health Insurance Subsidy Plan ("HIS Plan") is a
cost -sharing multiple -employer defined benefit pension plan established under Section
112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of
State -administered retirement systems in paying their health insurance costs and is
administered by the Division of Retirement within the Florida Department of
Management Services.
Benefits Provided. For the year ended September 30, 2019, eligible
retirees and beneficiaries received a monthly HIS payment equal to the number of
years of creditable service completed at the time of retirement multiplied by $5. The
payments are at least $30 but not more than $150 per month, pursuant to Section
112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree
under a State -administered retirement system must provide proof of health insurance
coverage, which can include Medicare.
Contributions. The HIS Plan is funded by required contributions from FRS
participating employers as set by the Florida Legislature. Employer contributions are
a percentage of gross compensation for all active FRS members. For the year ended
September 30, 2019, the contribution rate ranged between 1.66 percent and 1.66
percent of payroll pursuant to Section 112.363, Florida Statutes. The District
contributed 100 percent of its statutorily required contributions for the current and
preceding three years. HIS Plan contributions are deposited in a separate trust fund
from which HIS payments are authorized. HIS Plan benefits are not guaranteed and
are subject to annual legislative appropriation. In the event the legislative appropriation
or available funds fail to provide full subsidy benefits to all participants, benefits may be
reduced or cancelled.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the HIS Plan. At September
30, 2019, the District reported a HIS liability of $1,861,254 for its proportionate
share of the net HIS Plan's net pension liability. The net pension liability was measured
as of June 30, 2019, and the total pension liability was used to calculate the net
pension liability determined by an actuarial valuation as of July 1, 2019. The District's
proportionate share of the net HIS liability was based on the District's 2018-19 fiscal
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 50 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan, continued
year contributions relative to the total 2018-19 fiscal year contributions of all
participating members. At September 30, 2019, the District's proportionate share
was .016634678 percent, which was a decrease of .002378490 percent from its
proportionate share measured as of September 30, 2018.
For the fiscal year ended September 30, 2019, the District recognized HIS expense
of $120,792. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Differences between expected
and actual experience
Change of assumptions
Net difference between projected and actual
earnings on HIS pension plan investments
Changes in proportion and differences between
District HIS contributions and proportionate
share of HIS contributions
District contributions subsequent to the
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 22,607 $ 2,279
215,516 152,124
1,201
255,129 643,028
21,808 -
$ 516,261 $ 797,431
The deferred outflows of resources related to HIS, totaling $21,808, resulting from
District contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the year ended September 30, 2020. Other
amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense over the
remaining service period of 7.2 years as follows:
Fiscal Years Ending
September 30
Amount
2020
$ (48,761)
2021
(48,761)
2022
(48,761)
2023
(48,760)
2024
(49,061)
Thereafter
(58,874)
Total $ (302,978)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 51 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan, continued
Actuarial Assumptions. The total pension liability in the July 1, 2019, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.60 percent
Real Payroll Growth 0.65 percent
Salary Increases 3.25 percent, average, including inflation
Municipal Bond Rate 3.50 percent
Actuarial Cost Method Individual entry age
Mortality rates were based on the Generational RP-2000 with Projected Scale BB.
Because the HIS Plan is funded on a pay-as-you-go basis, no experience study hay
been completed for the Plan.
Discount Rate. The discount rate used to measure the total HIS liability was
decreased from 3.87 % to 3.50%. In general, the discount rate for calculating the total
HIS liability is equal to the single rate equivalent to discounting at the long-term
expected rate of return for benefit payments prior to the projected depletion date.
Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion
date is considered to be immediate, and the single equivalent discount rate is equal to
the municipal bond rate selected by the plan sponsor. The Bond Buyer General
Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal
bond index.
Sensitivity of the District's Proportionate Share of the Net HIS Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net HIS liability calculated using the discount rate of
3.50 percent, as well as what the District's proportionate share of the net HIS
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (2.50 percent) or 1-percentage-point higher (4.50 percent) than the current
rate:
1 % Current 1 %
Decrease Discount Rate Increase
(2.50%) (3.50%) (4.50%)
District's proportionate share of
the net HIS liability $ 2,124,717 $ 1,861,254 $ 1,641,819
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 52 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan, continued
Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Comprehensive Annual Financial Report (FRS "CAFR") dated
June 30, 2019.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. BOX 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2019, the District reported a
payable of $0 for the outstanding amount of contributions to the HIS plan.
FRS - Defined Contribution Pension Plan
The SBA administers the defined contribution plan officially titled the FRS Investment
Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial
statements and in the State of Florida Comprehensive Annual Financial Report.
As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect
to participate in the Investment Plan in lieu of the FRS defined benefit plan. District
employees participating in DROP are not eligible to participate in the Investment
Plan. Employer and employee contributions, including amounts contributed to
individual member's accounts, are defined by law, but the ultimate benefit depends in
part on the performance of investment funds. Benefit terms, including contribution
requirements, for the Investment Plan are established and may be amended by the
Florida Legislature. The Investment Plan is funded with the same employer and
employee contribution rates that are based on salary and membership class (Regular
Class, Elected County Officers, etc.) as the FRS defined benefit plan. Contributions
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 53 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS - Defined Contribution Pension Plan, continued
are directed to individual member accounts, and the individual members allocate
contributions and account balances among various approved investment choices.
Costs of administering the plan, including FRS Financial Guidance Program, are
funded through an employer contribution of 0.06 percent of payroll and by forfeited
benefits of plan members. Allocations to the investment member's accounts during
the 2018-19 fiscal year were as follows:
Class
Florida Retirement System, Regular
Florida Retirement System, Senior Management Service
Florida Retirement System, Special Risk
Deferred Retirement Option Program - Applicable
to Members from All of the Above Classes
Florida Retirement System, Reemployed Retiree
Florida Retirement System, Elected Official
Percent of Gross Salary*
Employee Employer (1) Employer (3)
3.00
8.47
8.26
3.00
25.41
24.06
3.00
25.48
24.50
0.00
14.60
14.03
(2)
N/A
N/A
3.00
48.82
48.70
Notes:
(1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/19 - 6/30/20.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/18 - 6/30/19.
* As defined by the Plan.
For all membership classes, employees are immediately vested in their own
contributions and are vested after 1 year of service for employer contributions and
investment earnings. If an accumulated benefit obligation for service credit originally
earned under the FRS Pension Plan is transferred to the Investment Plan, the member
must have the years of service required for FRS Pension Plan vesting (including the
service credit represented by the transferred funds) to be vested for these funds and
the earnings on the funds. Nonvested employer contributions are placed in a suspense
account for up to 5 years. If the employee returns to FRS -covered employment
within the 5-year period, the employee will regain control over their account. If the
employee does not return within the 5 year period, the employee will forfeit the
accumulated account balance. For the fiscal year ended September 30, 2019, the
information for the amount of forfeitures was unavailable from the SBA; however,
management believes that these amounts, if any, would be immaterial to the District.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 54 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
FRS - Defined Contribution Pension Plan, continued
After termination and applying to receive benefits, the member may rollover vested
funds to another qualified plan, structure a periodic payment under the Investment
Plan, receive a lump -sum distribution, leave the funds invested for future distribution,
or any combination of these options. Disability coverage is provided; the member
may either transfer the account balance to the FRS Pension Plan when approved for
disability retirement to receive guaranteed lifetime monthly benefits under the FRS
Pension Plan, or remain in the Investment Plan and rely upon that account balance for
retirement income.
The District's Investment Plan pension expense included within the FRS expense
totaled $88,651 for the year ended September 30, 2019.
Payables to the Investment Plan. At September 30, 2019, the District reported a
payable of $0 for the outstanding amount of contributions to the Plan.
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund
The following brief description of the North Collier Fire Control and Rescue District
Firefighters' Pension Plan (originally known as the North Naples Firefighters' Pension
Plan) (the "Plan") is provided for general information purposes only. The Plan's name
changed effective January 1, 2015 with the District's merger. Participants should refer
to the plan agreement for a more complete description of the Plan. On July 11, 1996,
under the authority of Florida Statute 175 and Laws of Florida, Chapter 95-338, the
District's Board of Commissioners passed Resolutions 96-004 and 96-005, providing
for the establishment and funding of a single employer defined benefit retirement plan
and trust for newly hired fire suppression personnel effective January 1, 1996. The
resolutions establish that certified firefighters hired on or after January 1, 1996 are to
become participants in the District's Firefighters' Pension Trust ( FPT) Fund. The Plan
is totally administered, including all investment management, by a third party
administrator and the Plan's appointed 5 member Pension Board.
Effective October 1, 2011, employee participants were required to contribute 3%
(similar to FRS) of compensation (an increase from .5% of compensation) per
Resolution 11-031.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 55 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Effective January 1, 2015, employees of the Big Corkscrew Island (BCI) Fire
District merged with those of North Naples Fire District. As such, five employees of
BCI joined Plan 2.
During the year ended September 30, 2015, the District adopted Governmental
Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting
for Pensions" (GASB 68). As such, the Plan's beginning net position was restated
and the net pension liability was recorded in the government -wide financial
statements.
During the years ended September 30, 2019, 2018, and 2017 there were employee
contributions in the amount of $1,027,420, $412,640, and $416,608, respectively, to
the Plan. The employer contributed 100% of its required contributions, as well as
those required contributions of the participating firefighters (0.5% pick-up).
The Plan provides for full-time firefighting personnel to become eligible to participate
in the Plan immediately upon hire. Under District resolution 96-005, the District
elected to pay the 0.5% (1% prior to December 9, 2004) employee required
contribution on behalf of the employee. Effective December 9, 2004, the employee
contribution was reduced to 0.5% (employee pick up). Effective July 1, 2001 (per
resolution 01-01), benefits under the Plan vest after six years of creditable service.
Employees who elect normal retirement at or after age 55 with 6 years of creditable
service, or 25 years of service regardless of age, are entitled to a retirement benefit.
Effective October 1, 2011, required employee contributions increased to 3% of
compensation. Employees may elect early retirement after 6 years of creditable
service with a reduction in benefit not to exceed 3% for each year before normal
retirement. The Plan also includes certain disability and death benefits.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 56 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Contributions - Contributions to the Plan are derived from three sources:
the Plan's participants are required to contribute to the Plan in the amount of 3% of
their covered wages and pursuant to resolution 11-031 the District has elected to
increase the affected employees' salary by 0.5% (employer pick-up), State funds
(fire [hazard] insurance premium tax per Florida Statute Chapter 175) and employer
(remaining amount necessary to meet actuarial requirement). For the period from
January 1, 1996 through September 30, 1996, no employer contributions were
required. Employer contributions were required beginning October 1, 1996. The
State contributions under Chapter 175 began in June 1997. This revenue is based on
property fire insurance premiums paid within the District and is applied up to an
approved "frozen" limit of $1,746,716. The District (employer) is required to fund
the difference each year between the total contributions from all other sources for the
year and the total cost for the year pursuant to the most recent actuarial valuation of
the Plan. The total cost for any year equals total normal cost plus the additional
amounts sufficient to amortize the unfunded past service liability over a 30 year period
commencing the first year of the Plan's inception.
Effective January 1, 2019, Resolution 18-031 was adopted, which implemented and
increase in the benefit multiplier to 3.53% for all years of service for all active
members and an increase in the member contribution rate to 8.48% (3.0% prior to
January 1, 2019). The District shall pay 0.5% of the member contributions.
Pursuant to Florida law, the District is ultimately responsible for making sure the Plan
remains actuarially sound. Therefore, each year, the District must contribute an
amount determined by the Board in conjunction with their actuary to be sufficient,
along with the participant's contribution and the State contribution, to fund the
benefits under the Plan. The employer's contribution will vary from year to year.
Pursuant to Chapter 175, Florida Statutes, the District imposed a 1.85% tax on fire
insurance premiums paid to insure real or personal property with the District. The
proceeds of this tax are contributed to this Plan as are of the District's contribution.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 57 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Pursuant to the actuarial study dated October 1, 2018 for the year ended September
30, 2019, the District's contribution (District only) requirement was 35.89% of the
actuarially determined covered payroll. Actual District contributions to the Plan for
the years ended September 30, 2019, 2018 and 2017, were $3,306,435,
$2,990,030, and $2,927,841 respectively. The State contributions for the years
ended September 30, 2019, 2018 and 2017 were $1,874,326, $1,741,988 and
$1,369,167 respectively. Employees contributed (3%prior to January 1, 2019 and
8.48% after December 31, 2018) $1,027,420 to the Plan for the year ended
September 30, 2019. At September 30, 2019, $88,893,450 the Plan's total net
position was restricted for retiree benefits.
Payables to the Pension Plan. At September 30, 2019, the District reported a
payable of $0 for the outstanding amount of contributions payable to the
pension plan.
Pension Benefits - Effective July 1, 2001, employees with 6 or more years of
service are entitled to monthly pension benefits, beginning at the earlier of age 55 with
6 years of credited service or 25 years credited service regardless of age. Benefit is
equal to 3.53% of their average final compensation (AFC) times credited service
prior to October 1, 2013 plus 3% of average final compensation times credited
service on and after October 1, 2013. AFC means the average of the highest five (5)
years within the last ten (10) years of service. Maximum benefit is 100% of AFC.
The Plan permits early retirement with 6 years (10 years prior to July 2, 2001) of
credited service. Members hired after December 31, 2014 must have 10 years of
credited service to qualify for early retirement. Employees may elect to receive their
pension benefits in the form of a 10 year certain and life annuity. If employees
terminate before rendering 10 years of credited service, they forfeit the right to
receive the portion of their accumulated plan benefits.
All retirement benefits are annually increased for cost of living at 3%.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 58 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Death and Disability Benefits - Upon the death of any vested member,
whether or not still in active employment, a survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age. The
benefit is equal to the vested pension benefit and is payable for 10 years. The
Minimum line of duty death benefit is 50% of the participant's salary, which is
payable either to the participant's spouse or minor children. This line of duty death
benefit is payable to the spouse for life, or to age 18 for the children.
Effective July 1, 2019 and in accordance with Chapter 2019-2 1, Laws of Florida,
the Plan must consider a firefighter to have died in the line of duty if he or she dies as
a result of cancer or circumstances that arise out of the treatment of cancer.
Employees who become totally disabled receive the greater of the accrued pension
benefit or 25% of AFC, if non -service incurred, or 42% of AFC, if active service
incurred. Effective December 9, 2004, the active service related benefit was
increased to 65%.
Effective July 1, 2019 and in accordance with Chapter 2019-21, Laws of Florida,
the Plan must consider a firefighter totally and permanently disabled in the line of duty
if he or she meets the Plan's definition of totally and permanently disabled due to the
diagnosis of cancer or circumstances that arise out of the treatment of cancer.
Supplemental Benefits - Effective December 31, 2004, each service and
disability retiree and their joint pensioners or beneficiaries and vested terminated
members shall receive a supplemental payment to be used as a health insurance
subsidy payment. The amount shall be five dollars ($5) for each full year of credited
service for life. The maximum monthly supplement is one hundred fifty dollars ($150)
and the minimum thirty dollars ($30).
DROP - Effective December 12, 2013, Resolution 13-034 was adopted, which
established a Deferred Retirement Option Plan ("DROP"). An "eligible participant" of
the pension plan, which is defined as an individual currently on full-time work status,
may elect to participate in the DROP on the first day of the month coincident with or
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 59 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
next following either, attainment of age fifty-five (55) and the completion of ten (10)
years of credited service, or the completion of twenty-five (25) years of credited
service, which date shall constitute the "initial date of eligibility". An eligible
participant electing to participate in DROP must complete and execute such forms as
may be required by the District and supplied by the Board of Trustees not less than
thirty (30) days prior to entering the DROP. The forms shall include, but not limited
to, an irrevocable letter of resignation effective no later than the conclusion of the
maximum period of DROP participation. Election into the DROP is irrevocable
provided there shall be no minimum period of participation; however in the event of a
voluntary termination prior to the maximum period, any DROP participant termination
prior to such maximum DROP period shall submit a written notice at least thirty (30)
days prior to such early termination of DROP participation.
An eligible participant may elect to participate in the DROP only once. After
commencement of participation in DROP, a participant shall no longer earn, accrue or
purchase additional service credits towards retirement benefits or later enhancements
to the firefighters' pension plan.
Upon the effective date of an eligible participant's participation in DROP, all
contributions by and on behalf of the participant to the plan shall be discontinued. For
all plan purposes, service and vesting credits of an eligible participant electing DROP
shall be fixed as of the effective date of commencement of DROP participation. Any
services as a firefighter after entry into DROP shall not be used for calculation or
determination of benefits payable by the pension plan. The average final
compensation of a participant, as defined in this plan shall be determined as of the
effective date of commencement of DROP participation and other subsequent
earnings shall not be used for calculation or determination of benefits payable by the
pension plan.
Income Recognition - Interest income is recorded on the accrual basis. Investments
are reported at market value. Short-term investments are reported at cost, which
approximates market value.
Actuarial Present Value of Accumulated Plan Benefits - Accumulated plan
benefits are those future periodic payments, including lump -sum distributions, that
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 60 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
are attributable under the Plan's provisions to the service employees have rendered.
Accumulated plan benefits include benefits expected to be paid to (a) retired or
terminated employees or their beneficiaries, (b) beneficiaries of employees who have
died, and (c) present employees or their beneficiaries. Benefits under the Plan are
based on employees' age at entry to the Plan and are based upon the current starting
salary for firefighters at entry level. Benefits payable under all circumstances,
retirement, death, disability and termination of employment, are included, to the
extent they are deemed attributable to employee service rendered to the valuation
date.
The actuarial present value of accumulated plan benefits is determined by an actuary
and is the amount that results from applying actuarial assumptions to adjust the
accumulated plan benefits to reflect the time value of money (through discounts for
interest) and the probability of payment (by means of decrements such as for death,
disability, withdrawal, or retirement) between the valuation date and the expected
date of payment. The significant actuarial assumptions used in the valuations as of
October 1, 2018 were (a) life expectancy of participants - RP 2000 (combined
healthy, sex distinct) Mortality Table was used, (b) retirement age assumptions (the
assumed average retirement age was 55), and (c) annual investment return of 7.4%
(net of fees). The actuarial valuation reflected assumed average rates of return of
7.4% (net of fees). The foregoing actuarial assumptions are based on the presumption
that the Plan will continue. if the Plan terminated, different actuarial assumptions and
other factors might be applicable in determining the actuarial present value of
accumulated plan benefits.
The actual money -weighted rate of return on Plan assets was 3.58%.
Payment of Benefits - Benefit payments to participants are recorded upon
distribution. The District contributed 100% of the required contributions. A summary
of certain Plan details and trend information is included below.
A copy of the Plan and Plan audit as of and for September 30, 2019 can be
obtained by writing to the District at 1885 Veterans Park Drive, Naples, Florida
34109-0492, or by calling (239) 597-3222.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 61 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
The following is a summary of the Single -Employer Defined Benefit Pension Plan
(Florida Statutes Chapter #175), including funding policies, contribution methods,
benefit provisions and trend information:
Firefighters' Pension
Trust Fund - Plan 2
Year established and governing authority
District Resolution 96- 004 (July 11, 1996)
Governing body
Board of Trustees of Plan
Determination of contribution requirements:
Actuarially determined
Employer (District)
Amount required in excess of Member and
applicable State contributions needed in
order to pay current costs and amortize any
unfunded past service cost over 30 years
Plan members
3.0% of covered payroll
Funding of administrative costs:
Employer
Period required to vest
10 years
Annual salary increase
Graduated Scale based on Credited Service (see below)
Post retirement benefit increase
Cost of living increase of 3% each year
Eligibility for distribution
Earlier of 55 with 6 years of credited service or
(Normal retirement)
25 years credited service regardless of age
Provisions for:
Disability benefits
Yes
Death benefits
Yes
Early retirement
Yes
Assumed inflation
2.5%
Actuarial assumption/method changes since
prior valuation:
Actuarial Cost Method Entry Age Normal. Prior valuations utilized Frozen
Amortization Method Level Dollar Amount, Closed
Remaining Amortization Period 27 years
Net -of -Fees Investment Return 7.40%
Annual Salary Increase Flat 6% per year to graduated scale (9% per year
for first 10 years & 3% per year for 10+ years)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 62 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Net Pension Liability of the Fund - The components of the net pension liability of
the District at September 30, 2019 were as follows:
Amount
Total pension liability $ 97,252,548
Plan fiduciary net position (88,893,450)
District's net pension liability $ 8,359,098
Plan fiduciary net position as a percentage of the
total pension liability 91.45%
The total pension liability was determined by an actuarial valuation as of September 30,
2019 using certain actuarial assumptions, the most significant of which were 7.4 percent
for the investment rate of return (net of fees), 3.0-9.0 percent for projected salary increases
and 2.5 percent for inflation.
Mortality rates were based on the RP-2000 Combined Healthy Mortality Table.
Disabled lives are set forward two years for females and set back four years for males.
The Plan's policy with regards to the allocation of invested assets is established and may be
amended by the Pension Board. Plan assets are managed on a total return basis with a
long-term objective of achieving and maintaining a fully funded status for the benefits
provided through the Plan. The investment policy was last amended in February 2014.
The following table summarizes the Board's adopted allocation policy and the long-term
expected real rates of return for each major asset class:
Asset Class
Target
Allocation
Actual
Allocation
Long -Term
Expected Real
Rate of Return*
Domestic equities
45%
52.13%
7.5%
International equities
15%
15.74%
8.5%
Fixed income
15%
16.72%
2.5%
International fixed income
5%
6.45%
3.5%
Global Tactical Asset Allocation
10%
0.00%
4.5%
Real estate
10%
7.41%
3.5%
Cash and cash equivalents
minimal
1.55%
not available
* annual arithmetic return 100% 100%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 63 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
The long-term expected rate of return on Plan assets was determined using a
building-block method in which best -estimate ranges of expected future real rates of
return (expected returns, net of Plan investment expense and inflation) are developed
for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
Discount Rate. The discount rate used to measure the total pension liability was 7.4
percent. The projection of cash flows used to determine the discount rate assumed
that plan participant contributions will be made at the current contribution rate and
that District contributions will be made at rates equal to the difference between
actuarially determined contribution rates and the participant rate. Based on those
assumptions, the Plan's fiduciary net position was projected to be available to make
all projected future benefit payments of current plan participants. Therefore, the
long-term expected rate of return on Plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Rate of Return Sensitivity. The sensitivity of the net pension liability to changes in
the discount rate was measured as follows. The net pension liability of the District
was calculated using the discount rate of 7.4 percent. It was also calculated using a
discount rate that was 1-percentage-point lower (6.4 percent) and
1-percentage-point higher (8.4 percent) than the current rate:
1 % Current 1 %
Decrease Discount Rate Increase
6.4% 7.4% 8.4%
Net pension liability (asset) $ 24,118,095 $ 8,359,098 $ (4,375,241)
Deferred Inflows/Outflows of Resources Related to Pensions
On September 30, 2019, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 64 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Differences between expected and
actual experience
Change of assumptions
Net difference between projected and actual
earnings on plan investments
Contributions subsequent to the measurement date
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 5,130,876 $ 691,095
1,267,794 1,549,200
- 1,937,580
5,180,760 -
$ 11,579,430 $ 4,177,875
The deferred outflows of resources related to the pension, resulting from District
contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the fiscal year ended September 30, 2019.
Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to the pension will be recognized in pension expense as follows:
Years Ending
September 30
Amount
2020
$ 451,693
2021
(413,331)
2022
(451,439)
2023
232,029
2024
439,133
Thereafter
1,962,710
Total
$ 2,220,795
Memberships of the Plan consisted of the following at October 1, 2019:
Firefighters' Pension
Trust Fund - Plan 2
Active plan members 159
Inactive plan members or beneficiaries currently receiving benefits 16
Inactive plan members entitled to but not yet receiving benefits 11
Total 186
Number of participating employers 1
Number of participating state agencies
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 65 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
The following is a schedule of changes in net pension liability for the fiscal year ended
September 30, 2019:
Balances at September 30, 2018
Changes for the fiscal year:
Service cost
Interest
Differences between expected and
actual experience
Changes of assumptions
Changes in benefit terms
Adjustment*
Contributions - Employer
Contributions - State
Contributions - Employee
Contributions - Buy Back
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net changes
Balances at September 30, 2019
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
$ 84,102,349 $ 80,928,687 $ 3,173,662
4,781,378 - 4,781,378
6,998,576 - 6,998,576
(3,704,706)
-
(3,704,706)
1,542,262
-
1,542,262
4,827,997
-
4,827,997
(537,588)
(537,588)
-
-
3,306,434
(3,306,434)
-
1,874,326
(1,874,326)
-
1,027,713
(1,027,713)
37,024
37,024
-
-
3,172,881
(3,172,881)
(794,744) (794,744) -
- (121,283) 121,283
13,150,199 7,964,763 5,185,436
$ 97,252,548 $ 88,893,450 $ 8,359,098
* Includes $537,296 unearned revenue and $292 employee contribution receivable.
Annual Pension Cost, Net Pension Obligation and Reserves
Current year annual pension costs for the Firefighters' Pension Trust Fund are shown
in the trend information provided. The Firefighters' Pension Trust Fund had a net
unfunded actuarial accrued liability at October 1, 2019 of $8,359,098.
The Plan assets are legally reserved for the payment of the respective plan member
benefits within the Plan. There are no assets legally restricted for plan benefits other
than these assets within the Plan. The Firefighters' Pension Trust Fund held certain
investments at year end.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 66 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Trend Information
Firefighters' Pension Trust Fund
Total (1)
Required Actual Contributions Net
Annual
Fiscal Pension
Year Contribution
District State State (2)
Required Required Frozen
Contribution Contribution Contribution
Pension
Actual Percentage Obligation
Contribution Contributed (NPO)
2019 $ 4,643,465 $ 2,769,139 $ 1,874,326 $1,746,716 $ 5,180,761 112%
2018 $ 4,732,018 $ 2,990,030 $ 1,741,988 $1,746,716 $ 4,732,018 100%
2017 $ 4,302,560 $ 2,933,393 $ 1,369,167 $1,746,716 $ 4,302,560 100%
2016 $ 3,146,984 $ 1,735,437 $ 1,411,547 $1,746,716 $ 3,146,984 100%
2015 $ 2,594,733 $ 1,107,133 $ 1,487,600 $1,746,716 $ 2,594,733 100%
2014 $ 2,896,024 $ 1,518,926 $ 1,377,098 $1,746,716 $ 2,896,024 100%
2013 $ 3,386,733 $ 2,127,828 $ 1,314,064 $1,746,716 $ 3,441,892 102%
2012 $ 3,283,811 $ 2,166,246 $ 1,214,214 $1,746,716 $ 3,380,454 103%
2011 $ 3,473,598 $ 2,333,799 $ 1,139,799 $1,746,716 $ 3,626,125 104%
2010 $ 3,190,997 $ 2,170,443 $ 1,020,554 $1,746,716 $ 3,200,901 100%
2009 $ 2,796,158 $ 1,756,228 $ 1,039,931 $1,746,716 $ 3,079,738 110%
2008 $ 2,211,933 $ 1,009,715 $ 1,485,798 $1,485,798 $ 2,495,513 113%
(1) The District considers its annual pension cost to be its actuarially determined required
annual pension contribution including the employer and state contribution. Fy 2018
required contribution reduced by $0 excess State money reserve.
Pension Trust Required Supplementary Information
Schedule of Funding_ Progress Firefighters' Pension Trust Fund:
Unfunded
Actuarial Actuarial Actuarial UAAL as
Value of Accrued Accrued Annual a % of
Actuarial Assets ** Liability (AAL) Liability Funded Covered Covered
Valuation (AVA) -Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) b-a /c
10/01/19 $88,893,450 $97,252,548 $ 8,359,098 91.4% $14,434,146 57.9%
10/01/18 $80,928,687 $84,102,348 $ 3,173,661 96.2% $13,739,853 23.1%
10/01/17 $70,747,813 $73,738,012 $ 2,990,199 95.9% $13,771,976 21.7%
10/01/16 $58,512,948 $61,707,055 $ 3,194,107 94.8% $11,890,295 26.9%
10/01/15 $51,534,195 $51,541,750 $ 7,555 100.0% $ 9,671,942 0.1%
10/01/14 $49,189,571 $47,467,581 $(1,721,990) 103.6% $ 8,770,495 -19.6%
10/01/13 $42,143,137 $41,366,768 $ (776,369) 101.9% $ 9,092,235 -8.5%
10/01/12 $33,983,491 $33,924,855 $ (58,636) 100.2% $ 8,254,150 -0.7%
10/01/11 $26,196,164 $26,153,965 $ (42,199) 100.2% $ 8,291,830 -0.5%
10/01/10 $22,990,534 $23,284,830 $ 294,296 98.7% $ 7,737,940 3.8%
10/01/09 $17,833,111 $18,108,267 $ 275,156 98.5% $ 7,522,834 3.7%
10/01/08 $16,719,426 $16,890,153 $ 170,727 99.0% $ 7,082,194 2.4%
** reflected by actuary as Plan Fiduciary Net Position
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 67 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefthters' Pension Trust Fund,
continued
Valuation date
Actuarial cost method
Amortization method
Mortality table
Remaining amortization period
Actuarial asset valuation method
Actuarial assumptions:
Investment rate
Projected salary increase
Inflation
Post retirement cost of living
adjustment
Measurement date
Firefighters' Pension
Trust Fund
10/01/18
Entry Age Normal
Level dollar, closed
RP2000 Combined Healthy
27 years (as of 10/1/17)
5 Year Smoothed Market
7.4% (net of fees)
Graduated based on Service
(9% per year for first 10 years &
(3% per year for 10 or more years)
2.5%
3%
September 30, 2019
Changes of Assumptions
Member contribution rate changed effective January 1, 2019 from 3% to 8.48%.
District still pays .5% of member contribution.
Benefit changes effective January 1, 2019:
Increased benefit multiplier to 3.53% for all years of service.
Effective July 1, 2019, the Plan must consider a firefighter permanently and totally
disabled if diagnosed with cancer per Laws of Florida, Chapter 2019-21.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 68 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 3 - Plan Description and Provisions - 401(a)
The Board of Fire Commissioners established the 401(a) Plan for the general
employees and elected officials who are ineligible to participate in the Florida
Retirement System. The Plan was effective on January 1, 2013. At September 30,
2019, the Plan had two (2) active participants.
The Plan allows for employer contributions. Amounts contributed by the employer
correspond to the percentage of contributions by class, established for participants
of the Florida Retirement System. Employee contributions are prohibited.
Employer contributions are 100% vested after completion of one year of service. A
year of service is based on an employee completing at least 1,000 hours of service
during a plan year.
Total District contributions to the Plan for the year ended September 30, 2019, 2018
and 2017 were $1,098, $1,174 and $4,076, respectively.
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB)
The District formally established two (2) OPEB Plans to provide its retirees the
opportunity to obtain insurance (medical, dental and life) benefits. All retired full-time
employees are eligible for OPEB benefits if actively employed by the District
immediately before retirement. As such, active employees with at least twenty five
(25) years of service as of September 30, 2010 were allowed to elect to remain in
the Defined Benefit Plan or to enter the Post Employment Health Plan (PEHP), a
defined contribution Plan. The defined benefit Plan provides a $5,000 life insurance
benefit fully paid by the District. All retirees and Early Retirement Incentive Program
(ERIP) participants, who were eligible, remained in the Defined Benefit Plan. All
other active employees at that time, September 30, 2010, as well as future
employees entered the PEHP. Retirees under the PEHP Plan are responsible for the
full cost of coverage.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 69 of 1 l 2
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
The benefits are provided both with and without contractual or labor agreements.
The benefits may require contribution from the retirees, depending on certain
specified criteria and, in particular, length of creditable employment. The District
finances the benefits on a pay-as-you-go basis and recognizes expenditures at the
time the premiums are due for both Plans.
Effective January 1, 2015, all active employees of the merged District are covered
with the same post retirement health benefits.
Effective May 1, 2017 the District offered a post -employment health insurance
supplementation for eligible retirees who have completed fifteen (15) years of service
including three (3) years as a Chief Officer. Under this plan, the District shall
contribute 100% toward the cost of the retiree's participation in the District's health
insurance program for the retiree and qualifying spouse/dependent until the employee
reaches the age of 65 or is eligible for Medicare, whichever occurs first. This benefit
is provided in lieu of contributions to the PEHP.
Defined Benefit Plan
Specifically, the Defined Benefit Plan provides that the District will pay a portion of
medical and dental premiums for retirees depending on their years of credited service
starting with the completion of fifteen (15) years of credited service. As such, the
District pays 50% of the employee's premium and 25% of the spouse's premium at
completion of 15 years of service progressing to 100% of the employee's premium
and 100% of the spouse's premium upon completion of 25 years of service for
certain employees based on final rank at date of retirement.. The District also pays
the premium associated with a $5,000 life insurance benefit.
During fiscal years 2009 and 2010, the District offered two (2) separate Early
Retirement Incentive Programs (ERIP) to a number of active employees. A portion
of the programs includes full payment of premiums associated with medical, dental,
vision and life insurance coverage, including dependent coverage for a period of 3
years. After the 3 year period ends, the ERIP participants receive the Defined
Benefit Plan benefits they had been eligible for at termination. During the year ended
September 30, 2014, the District paid the final amounts due on the ERIP Plans.
Note that the projected premiums for the dental and life benefits are assumed to
cover the entire cost of the program.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 70 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Post Employment Health Plan (PEHP)
The PEHP is a defined contribution plan administered by the District.
All employees who did not elect to remain in the Defined Benefit Plan, and all
future active employees are participants in the PEHP.
Originally participants in the PEHP had $7,000 deposited on their behalf into an
account on the 20th anniversary of their date of hire and on each subsequent
anniversary. Additionally, those participants having over 20 years of credited service
at their date of retirement also received a $30,000 deposit on their behalf at date of
separation. Effective October 1, 2012, the Plan was changed to limit District total
contributions to $50,000 per employee.
Effective October 1, 2015, participants in the PEHP will have $2,500 deposited into
a trust account following the 5th anniversary of their date of hire and on each
subsequent year. Additionally, those participants having over 20 years of credited
service at their date of retirement will receive a maximum contribution ranging from
$37,000 to $50,000 depending on length of service.
The PEHP is designed to offer similar benefits to those offered under the Defined
Benefit Plan.
The District, as part of the PEHP, entered a group variable annuity contract. As
such, the PEHP Plan's asset custodian and third party administrator is the insurance
company through which the annuity is contracted.
General - Funding Policy
The District paid $191,577 for retiree's and ERIP participants' health care premiums
as part of the Defined Benefit Plan on a pay-as-you-go basis for the year ended
September 30, 2019.
The District also contributed $227,486 to the PEHP Plan for the year ended
September 30, 2019.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 71 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Post Employment Health Plan (PEHP), continued
General - Funding Policy, Continued
No separate trust has been established for either Plan. No separate financial
statement is issued for either OPEB Plan. All required disclosures are presented
herein. The District obtained an actuarial valuation for its defined benefit OPEB Plan
to measure the current year's subsidies and project these subsidies into the future,
making an allocation of that cost to different years. The following schedule of funding
progress presents multi -year trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued
liability for benefits.
Plan Description
The year ended September 30, 2018 was the District's transition year and as such,
the District implemented GASB No. 75 "Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions". GASB No. 75 requires the District
record its actuarially determined total OPEB liability.
All retired full-time employees are eligible for OPEB benefits if actively employed by
the District immediately before retirement. As of September 30, 2019, there were
forty-three (43) retirees eligible to receive benefits. At September 30, 2019 there
were two hundred thirty four (234) active District employees. The benefits are
provided both with contractual or labor agreements.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive
plan (the plan as understood by the employer and plan members) and include types
of benefits provided at the time of each valuation and the historical pattern of sharing
of benefit costs between the employer and plan members to that point. The methods
and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 72 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Actuarial Methods and Assumptions, continued
At September 30, 2019, the District's Net OPEB Liability of $8,893,953 was
measured as of September 30, 2018, and was determined by an actuarial valuation
as of October 1, 2018 using the alternate measurement method. OPEB expense for
the year ended September 30, 2019 was $782,306. The following actuarial
assumptions and other inputs were applied to all periods included in the measurement:
The following simplifying assumptions were made:
Mortality - Life expectancies were based on RP2000 Mortality Tables for Males and Females
projected 10 years.
Annual healthcare cost trend using the Society of Actuaries Long -Run Medical Cost Trend
Model baseline assumptions with an initial rate of 8.00% per year trending to 4.00% by 2073.
Turnover - Non -group -specific age -based turnover data from GASB Statement 45 were used as
the basis for assigning active members a probability of remaining employed until the assumed
retirement age and for developing an expected future working lifetime assumption for purposes
of allocating to periods the present value of total benefits paid.
Amortization Period: Rolling 20 year amortization
Amortization Method: level percentage of payroll
The discount rate was 4.18% (for 2019) (3.64% for 2018) and was based on the 20 Year Municipal
Bond Rate with AA/Aa or higher.
Entry age normal cost method was used.
Inflation Rate
2.50%
Salary Increases
6.00%
Discount Rate
4.18%
Initial Trend Rate
8.00%
Ultimate Trend Rate
4.00%
Years to Ultimate
56
The FRS salary scale was used
Participation percentage: 50%
The actuarial assumptions used in the September 30, 2019 valuation were based on results of an
actuarial experience study performed for the FRS Retirement Plan.
The rationales for selecting each of the assumptions used in the financial accounting valuation
and for the assumptions changes summarized above are to best reflect the current market
conditions and recent plan experience.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 73 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Changes in the Net OPEB Liability
Amnnnt
Balance at September 30, 2018
$ 10,173,608
Changes for the Year:
Service Cost
684,930
Interest Cost on Total OPEB Liability
387,918
Change in Benefit Terms
-
Difference Between Expected and Actual Experience
417,788
Changes in Assumptions
(2,363,827)
Benefit Payments
(406,464)
Net Changes
(1,279,655)
Balance at September 30, 2019
$ 8,893,953
The following presents the net OPEB liability of the District as well as what the
District's net OPEB liability would be if it were calculated using a discount rate that is
1 percent higher or 1 percent lower than the current discount rate.
1% Decrease Current Rate 1% Increase
3.18% 4.18% 5.18%
Net OPEB Liability $ 9,852,217 $ 8,893,853 $ 8,071,847
The following presents the net OPEB liability of the District as well as what the
District's net OPEB liability would be if it were calculated using healthcare trend rates
that are 1 percent higher or 1 percent lower than the current healthcare trend rate.
1% Decrease
Trend Rate
1% Increase
3.00-7.00%
4.00-8.00%
5.00-9.00%
Net OPEB Liability $ 7,934,140
$ 8,893,953
$ 10,046,458
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 74 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Changes in the Net OPEB Liability, continued
For the year ended September 30, 2019, the District recognized OPEB expense
credit of $782,306. At September 30, 2019, the District reported deferred outflows
of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred
Deferred
Outflows of
Inflows of
Resources*
Resources*
Differences Between Expected and
Actual Experience
$ 371,367
$ -
Changes in Assumptions
-
2,566,273
Net difference between projected
and actual earnings
-
-
Employer contribution subsequent
to measurement date
457,043
-
Total
$ 828,410
$ 2,566,273
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended September 30:
Amount
2020
$ (293,742)
2021
(293,742)
2022
(293,742)
2023
(293,742)
2024
(293,742)
Thereafter
(726,196)
Total $ (2,194,906)
Changes in Assumptions:
• Updated healthcare costs and premiums
• Updated healthcare cost trends
• Updated morality
• Increased discount rate from 3.64% to 4.18%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 75 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE I - RISK MANAGEMENT
During the year ended September 30, 2019, the District provided health benefits as
follows:
The District continued the use of a high deductible health plan offered to employees
and retirees of the District. The District does not offer vision coverage to the
employees of the District. The District offers a HSA plan for its employees. The
District contributes $5,000 for those eligible participants who have met the family
deductible and $3,000 for those eligible participants who have to meet the individual
deductible to the HSA plan annually.
Participants may also elect to contribute to the respective plan on a pre-tax basis.
HSA amounts that are not utilized by the year end are carried over and are the
property of the participant per IRS regulation.
The District's HSA contributions for the year ended September 30, 2019 were
$1,146,297.
The District incurred $4,775,956 in health related claims, third party administration
costs, disability, premiums and reinsurance premiums including HSA contributions
(noted above) and workers compensation insurance during the year ended
September 30, 2019, for the self-insurance and fully -funded insurance programs.
It is the policy of the District to purchase third party commercial insurance for other
remaining forms of potential risks to which it is exposed. The District's risk
management activities are reported in the General Fund. No accrual has been
recorded for claims and incidents not reported to the insurer. The District paid
$464,691 for building, auto and other liability insurances for the year ended
September 30, 2019. The District had no significant reductions in insurance
coverage from the prior year. Reported claims have not exceeded the insurance
coverage for the years ended September 30, 2011 through September 30, 2019.
NOTE J - PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become
due and payable on November 1 of each year and are delinquent on April 1 of the
following year. Discounts on property taxes are allowed for payments made prior to
the April 1 delinquent date. Tax certificates are sold to the public for the full amount
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 76 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE J - PROPERTY TAXES, CONTINUED
of any unpaid taxes and must be sold not later than June 1 of each year. The billing,
collection, and related record keeping of all property taxes is performed for the
District by the Collier County Tax Collector. No accrual for the property tax levy
becoming due in November 2019 is included in the accompanying basic financial
statements, since such taxes are collected to finance expenditures of the subsequent
period.
Procedures for collecting delinquent taxes, including applicable tax certificate sales
and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is
approximately two years after taxes become delinquent and occurs only upon request
of a holder of a delinquent tax certificate. As of September 30, 2019, $383,034 was
recorded in the General Fund and was due from the Collier County Tax Collector to
the District for ad valorem taxes and excess fees, and interest.
Important dates in the property tax cycle are as follows:
Assessment roll certified
Millage resolution approved
Taxes due and payable (Levy date)
Property taxes payable - maximum
discount (4 percent)
Beginning of fiscal year for which
taxes have been levied
Due date
Taxes become delinquent (lien date)
Tax certificates sold by the Collier
County Tax Collector
July 1
No later than 93 days following
certification of assessment roll.
November/with various discount
provisions through March 31.
30 days after levy date
October 1
March 31
April 1
Prior to June 1
For the year ended September 30, 2019, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of $1.00 per $1,000 (1.0 mills) of the 2018
net taxable value of real property located within the North Naples Service Delivery
Area.
For the year ended September 30, 2019, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of $3.50 per $1,000 (3.5 mills) of the 2018
net taxable value of real property located within the Big Corkscrew Island Service
Delivery Area.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 77 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE K - IMPACT FEE FUND ACTIVITY
During the year ended September 30, 2019, the Impact Fee Fund had the following
activity:
Amount
Unearned revenue, October 1, 2018
$ 85,729
Impact fee receipts
725,638
Impact fee refunds
(17,507)
Due from other Governments
49,131
Interest and other income
30,135
Operating expenses
(17,547)
Principal reduction
(57,500)
Loan interest
(45,820)
Capital outlay
(6,525)
Transfers in (out)
Unearned revenue, September 30, 2019 $ 745,734
NOTE L - FUND BALANCE/NET POSITION ALLOCATIONS
Fund Balance/Net Position were allocated for the following purposes at September
30, 2019:
NN BCI Total
Nonspendable - General Fund Amount Amount Amount
Nonspendable fund balance - General Fund prepaid expenses $ 1,022.485 $ - $ 1,022.485
Assigned fund balance - General Fund
General Fund - Expenses - Oct - Dec
General Fund - Emergency reserve
General Fund - Fire apparatus
Total General Fund
NN BCI Total
Amount Amount Amount
$ 7,621,213 $ - $ 7,621,213
4,899,659 565,991 5,465,650
700,000 - 700,000
$ 13,220,872 $ 565,991 $ 13,786,863
NN BCI Total
Unassigned - General Fund Amount Amount Amount
General Fund $ - $ - $ -
Total
Restricted Fund Balance/Net Position - Inspection Fee Fund Amount
Inspection Fee Fund $ 165,842
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 78 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE M - LEASED VEHICLES
On October 13, 2016, the District leased seventeen (17) vehicles under a forty eight
(48) month operating lease agreement with a monthly payment of $7,583 beginning
March 2017. The minimum annual lease payments are as follows:
Years Ending
September 30
2020
2021
Amount
$ 90,996
37,915
$ 128,911
Lease expense for the year ended September 30, 2019 was $92,021.
NOTE N - COMMITMENTS AND CONTINGENCIES
The District is involved from time to time in certain routine litigation, the substance of
which either as liabilities or recoveries, would not materially affect the financial
position of the District. Although the final outcome of the lawsuits, assertions, and
claims or the exact amount of costs and/or potential recovery is not presently
determinable, in the opinion of the District's legal counsel, the resolution of these
matters will not have a materially adverse affect on the financial condition of the
District. As a general policy, the District plans to vigorously contest any such
matters.
NOTE O - DEFICIT UNRESTRICTED NET POSITION (NET ASSETS)
During the year ended September 30, 2019, the District's unrestricted net position
(net assets) balance was a deficit of $(9,561,300), due substantially to recording the
current year actuarially determined net pension liability of $19,599,139 and the net
OPEB liability of $8,893,953. The District's total available fund balance at
September 30, 2019 remains approximately equal to four (4) months of actual
expenditures. However, the Board assigned fund balance of $13,786,863 to fund
operations for the first quarter of the subsequent fiscal year.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 79 of 112
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE O - DEFICIT UNRESTRICTED NET POSITION (NET ASSETS), CONTINUED
During the year ended September 30, 2018, the District's unrestricted net position
(net assets) balance was a deficit of $(7,858,148), due substantially to recording the
current year actuarially determined net pension liability of $14,648,252. The
District's total available fund balance at September 30, 2019 remains approximately
equal to four (4) months of actual expenditures. However, the Board assigned
100% of the available fund balance of $9,014,782 to fund operations for the first
quarter of the subsequent fiscal year.
COMBINING FINANCIAL STATEMENTS
BY SERVICE DELIVERY AREA
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 80 of 112
COMBINING BALANCE SHEET - GENERAL FUND - BY SERVICE
DELIVERY AREA
September 30, 2019
North Naples
Big Corkscrew
Total
Service
Island Service
General
Delivery Area
Delivery Area Eliminations
Fund
ASSETS
Cash and cash equivalents $
814,218
$ 5,988,955 $ $
6,803,173
Restricted cash and cash equivalents
-
-
-
Investments
7,265,674
-
7,265,674
Due from other governments
325,196
60,102
385,298
Due from other funds
5,666,436
- (5,483,066)
183,370
Other receivables
297,150
297,150
Prepaid expenses
1,022,485
-
1,022,485
TOTAL ASSETS $
15,391,159
$ 6,049,057 $ (5,483,066) $
15,957,150
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $ 1,140,302 $ $ $ 1,140,302
Retainage payable - -
Due to other funds - 5,483,066 (5,483,066) -
Contract deposits 7,500 - 7,500
Unearned revenue - -
TOTAL LIABILITIES 1,147,802 5,483,066 (5,483,066) 1,147,802
FUND BALANCE
Nonspendable 1,022,485 1,022,485
Restricted - - -
Assigned 13,220,872 565,991 13,786,863
Unassigned - - -
TOTAL FUND BALANCE 14,243,357 565,991 14,809,348
TOTAL LIABILITIES AND
FUND BALANCE $ 15,391,159 $ 6,049,057 $ (5,483,066) $ 15,957,150
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - GENERAL FUND -
BY SERVICE DELIVERY AREA
Year Ended September 30, 2019
REVENUES
Ad Valorem taxes
Intergovernmental revenue:
State firefighter supplement
Federal and state grants
Other Intergovernmental
Charges for services
Miscellaneous:
Interest
Other
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service:
Principal reduction
Interest and fiscal charges
Reserves
General Fund
North Naples Big Corkscrew Total
Service Island Service General
Delivery Area Delivery Area Fund
Page 81 of 112
$ 31,601,594 $
5,798,845 $
37,400,439
74,837
-
74,837
1,107,120
-
1,107,120
51,380
-
51,380
634,017
(2,856)
631,161
371,863
51,075
422,938
316,461
20,736
337,197
TOTAL REVENUES 34,157,272
5,867,800
40,025,072
25,405,367
4,885,714
30,291,081
4,122,865
741,430
4,864,295
746,841
133,866
880,707
346,890
62,179
409,069
66,700
11,956
78,656
TOTAL EXPENDITURES 30,688,663 5,835,145 36,523,808
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES 3,468,609 32,655 3,501,264
OTHER FINANCING SOURCES AND (USES)
Proceeds from capital lease 445,486
Proceeds from disposition of capital assets 2,497
Transfer in -
Transfer out -
TOTAL OTHER FINANCING SOURCES
AND (USES) 447,983
445,486
2,497
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES 3,916,592 32,655 3,949,247
FUND BALANCE - Beginning 10,326,765 533,336 10,860,101
FUND BALANCE - Ending $ 14,243,357 $ 565,991 $ 14.809,348
The accompanying notes are an integral part of this statement.
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 82 of 112
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND -
SUMMARY STATEMENT - NN
Year Ended September 30, 2019
General Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Ad Valorem taxes $
30,823,544 $
30,823,544 $
31,601,594
$ 778,050
Intergovernmental revenue:
State firefighter supplement
62,684
62,684
74,837
12,153
Federal and state grants
152,894
831,454
1,107,120
275,666
Other Intergovernmental
25,446
25,446
51,380
25,934
Charges for services
602,840
602,840
634,017
31,177
Miscellaneous:
Interest
39,432
293,892
371,863
77,971
Other
307,871
307,871
316,461
8,590
Subtotal - revenues
32,014,711
32,947,731
34,157,272
1,209,541
Cash brought forward
8,544,647
10,326,765
(10,326,765)
TOTAL REVENUES
40,559,358
43,274,496
34,157,272
(9,117,224)
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service:
25,753,216 25,831,338 25,405,367 425,971
4,553,513 4,553,512 4,122,865 430,647
519,485 926,066 746,841 179,225
Principal reduction
346,892
346,892
346,890
2
Interest and fiscal charges
66,700
66,700
66,700
-
Reserves
9,682,778
11,936,329
-
11,936,329
TOTAL EXPENDITURES
40,922,584
43,660,837
30,688,663
12,972,174
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES (363,226)
(386,341)
3,468,609
3,854,950
OTHER FINANCING SOURCES AND (USES)
Proceeds from capital lease
-
377,861
445,486
67,625
Proceeds from disposition of capital assets
8,480
8,480
2,497
(5,983,
Transfer in
354,746
-
-
Transfer out
-
-
-
-
TOTAL OTHER FINANCING SOURCES
AND (USES)
363,226
386,341
447,983
61,642
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ $ - 3,916,592 $ 3,916,592
FUND BALANCE - Beginning 10,326,765
FUND BALANCE - Ending $ 14.243.357
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 83 of 112
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT - NN
Year Ended September 30, 2019
General Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Ad Valorem taxes $
30,823,544 $
30,823,544 $
31,601,594
$ 778,050
Intergovernmental revenue:
State firefighter supplement
62,684
62,684
74,837
12,153
Federal and state grants
152,894
831,454
1,107,120
275,666
Other Intergovernmental
25,446
25,446
51,380
25,934
Charges for services
602,840
602,840
634,017
31,177
Miscellaneous:
Interest
39,432
293,892
371,863
77,971
Other
307,871
307,871
316,461
8,590
Subtotal - revenues
32,014,711
32,947,731
34,157,272
1,209,541
Cash brought forward
8,544,647
10,326,765
(10,326,765)
TOTAL REVENUES
40,559,358
43,274,496
34,157,272
(9,117,224)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Firefighters & Admin.
14,497,692
14,497,692
14,319,989
177,703
Commissioners
25,440
25,440
25,440
-
Overtime
627,895
627,895
710,529
(82,634)
Vacation pay
166,208
166,208
171,906
(5,698)
Sick leave
670,184
670,184
587,708
82,476
Professional/Incentives and holiday pay
677,186
677,186
709,316
(32,130)
Payroll taxes
Social Security
1,275,658
1,275,658
1,242,775
32,883
Benefits
Retirement
3,536,510
3,436,510
3,417,488
19,022
Health insurance (including HSA)
3,350,372
3,350,372
3,127,434
222,938
Disability insurance
64,413
64,413
62,846
1,567
Unemployment
-
-
2,798
(2,798)
Workers compensation
653,898
653,898
648,423
5,475
Medical clinic/employee physicals
196,736
196,736
179,600
17,136
Post employment health plan (PEHP)
8,480
186,602
192,908
(6,306)
Retirement recognition
2,544
2,544
6,207
(3,663)
Subtotal - Personnel services
25,753,216
25,831,338
25,405,367
425,971
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 84 of 112
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT - NN (CONTINUED)
Year Ended September 30, 2019
General Fund
Variance
Original
Final
Favorable
Operating expenditures:
Budget
Budget
Actual
(Unfavorable)
Insurance
378,420
378,420
394,058
(15,638)
Uniforms
85,411
85,411
73,798
11,613
Communications
16,324
16,324
27,873
(11,549)
Telephone
322,863
322,863
273,911
48,952
Utilities
227,779
227,779
241,037
(13,258)
Maintenance
Vehicle
311,304
311,304
282,743
28,561
Equipment
63,685
63,685
9,308
54,377
Computer
344,506
344,506
355,581
(11,075)
Hydrant
21,200
21,200
36,698
(15,498)
Building
325,752
325,752
305,377
20,375
Supplies
Office
57,897
57,897
55,650
2,247
Protective gear
99,487
99,487
109,666
(10,179)
Station
48,082
48,082
45,669
2,413
Emergency medical
145,690
145,690
122,632
23,058
Enterprise Lease/Rental
78,016
78,016
78,034
(18)
Hurricane/emergency
-
-
-
-
Equipment
Office
36,464
36,464
19,184
17,280
Fire
82,129
82,129
91,161
(9,032)
Shop
18,212
18,212
27,344
(9,132)
Warehouse/logistics
5,470
5,470
5,158
312
Professional and other fees
Legal and professional
356,118
356,118
267,112
89,006
Property appraiser fees
224,821
224,821
239,572
(14,751)
Tax collector fees
620,750
620,750
627,168
(6,418)
Accounting
67,840
67,840
54,781
13,059
Miscellaneous
Travel
68,501
68,501
45,447
23,054
Water/sewer fee St. 44
21,242
21,242
-
21,242
Public information officer
3,392
3,392
6,395
(3,003)
Fuel and oil
212,000
212,000
173,170
38,830
Legal advertisements
8,482
8,482
2,253
6,229
Dues and subscriptions
9,838
9,838
11,380
(1,542)
CERT team
5,088
5,088
3,524
1,564
Dive team
3,210
3,210
3,229
(19)
Fire prevention
4,240
4,240
1,228
3,012
Training
164,110
164,110
109,448
54,662
Hazardous materials
6,360
6,360
4,876
1,484
Technical rescue
4,706
4,706
8,833
(4,127)
Boat team
3,646
3,646
2,067
1,579
K-9 search and rescue
-
-
-
-
Honor guard
OPS
Peer fitness
-
-
-
-
Miscellaneous
16,526
16,525
7,500
9,025
Operational Reserves
Contingency
83,952
83,952
83,952
Subtotal - Operating expenditures
4,553,513
4,553,512
4,122,865
430,647
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 85 of 112
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT - NN (CONTINUED)
Year Ended September 30, 2019
General Fund
Variance
Original
Final
Favorable
Capital outlay:
Budget
Budget
Actual
(Unfavorable)
Land
-
-
-
-
Station improvements
268,053
268,053
102,213
165,840
Fire & rescue equipment
53,339
53,339
20,793
32,546
Protective gear
94,382
94,382
40,335
54,047
Medical equipment
-
-
13,926
(13,926)
Communication equipment
27,984
434,565
402,945
31,620
Office equipment
-
-
-
-
Computers
63,770
63,770
132,627
(68,857)
TRT
-
-
-
Boat team
-
Training equipment
-
-
3,293
(3,293)
Vehicle purchase
1,272
1,272
-
1,272
Shop equipment
5,173
5,173
24,927
(19,754)
Logistics/warehouse
-
-
-
Hazardous materials equipment
Fire apparatus
-
-
-
-
Dive equipment
5,512
5,512
5,782
(270)
Fire Prevention
-
-
-
-
Community outreach
-
-
-
-
Subtotal - Capital outlay
519,485
926,066
746,841
179,225
Debt service:
Principal reduction
346,892
346,892
346,890
2
Interest and fiscal charges
66,700
66,700
66,700
-
Subtotal - Debt service
413,592
413,592
413,590
2
Reserves:
Reserves
9,682,778
11,936,329
11,936,329
TOTAL EXPENDITURES
40,922,584
43,660,837
30,688,663
12,972,174
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES (363,226) (386,341) 3,468,609 3,854,950
OTHER FINANCING SOURCES AND (USES)
Proceeds from capital lease - 377,861 445,486 67,625
Proceeds from disposition of capital assets 8,480 8,480 2,497 (5,983)
Transfers in 354,746 - -
Transfers out _ - _
TOTAL OTHER FINANCING SOURCES AND (USES) 363,226 386,341 447,983 61,642
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $ - $ 3,916,592 $ 3,916,592
FUND BALANCE - Beginning 10,326,765
FUND BALANCE - Ending $ 14,243,357
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 86 of 112
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND -
SUMMARY STATEMENT - BCI
Year Ended September 30, 2019
General Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Ad Valorem taxes $
5,632,253
$ 5,632,253 $
5,798,845
$ 166,592
Intergovernmental revenue:
State firefighter supplement
11,236
11,236
-
(11,236)
Federal and state grants
27,406
148,846
-
(148,846)
Other intergovernmental
4,554
4,554
-
(4,554)
Charges for services
12,160
12,160
(2,856)
(15,016)
Miscellaneous:
Interest
7,068
52,609
51,075
(1,534)
Other
36,784
36,784
20,736
(16,048)
Subtotal - revenues
5,731,461
5,898,442
5,867,800
(30,642)
Cash brought forward
470,135
533,336
-
(533,336)
TOTAL REVENUES
6,201,596
6,431,778
5,867,800
(563,978)
EXPENDITURES
Current
Public safety
Personnel services
4,951,123
5,083,001
4,885,714
197,287
Operating expenditures
816,183
816,183
741,430
74,753
Capital outlay
93,115
165,880
133,866
32,014
Debt service:
Principal reduction
62,179
62,179
62,179
-
Interest and fiscal charges
11,956
11,956
11,956
-
Reserves
332,147
361,724
-
361,724
TOTAL EXPENDITURES
6,266,703
6,500,923
5,835,145
665,778
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
(65,107)
(69,145)
32,655
101,800
OTHER FINANCING SOURCES AND USES
Proceeds from capital lease
-
67,625
-
(67,625)
Proceeds from disposition of capital assets
1,520
1,520
(1,520)
Transfer in / (out)
63,587
-
-
TOTAL OTHER FINANCING SOURCES
AND USES
65,107
69,145
(69,145)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ $ 32,655 $ 31655
FUND BALANCE - Beginning 533,336
FUND BALANCE - Ending $ 565,991
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND - DETAILED STATEMENT - BCI
Year Ended September 30, 2019
REVENUES
Ad Valorem taxes
Intergovernmental revenue:
State firefighter supplement
Federal and state grants
Other intergovernmental
Charges for services
Miscellaneous:
Interest
Other
Subtotal -revenues
General Fund
Page 87 of 112
Original
Budget
Final
Budget
Variance
Favorable
Actual (Unfavorable)
$ 5,632,253 $
5,632,253 $
5,798,845 $ 166,592
11,236
11,236
- (11,236)
27,406
148,846
(148,846)
4,554
4,554
(4,554)
12,160
12,160
(2,856) (15,016)
7,068 52,609 51,075 (1,534)
36,784 36,784 20,736 (16,048)
5,731,461 5,898,442 5,867,800 (30,642)
Cash brought forward
470,135
533,336
(533,336)
TOTAL REVENUES
6,201,596
6,431,778
5,867,800
(563,978)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Firefighters & Admin.
2,598,643
2,598,643
2,566,791
31,852
Salaries - harmonization
312,460
312,460
312,460
-
Commissioners
4,560
4,560
4,560
Overtime
112,547
112,547
127,360
(14,813)
Vacation pay
29,792
29,792
30,813
(1,021)
Sick leave
120,127
120,127
105,344
14,783
Incentives and holiday pay
121,382
121,382
127,141
(5,759)
Payroll taxes
Social Security
228,656
228,656
222,762
5,894
Benefits
-
Retirement
633,903
633,903
612,569
21,334
Health insurance
600,539
700,539
560,578
139,961
Disability insurance
11,546
11,546
11,265
281
Benefits harmonization
22,702
22,702
19,459
3,243
Unemployment
-
-
502
(502)
Workers compensation
117,026
117,026
116,227
799
Medical clinic/employee physicals
35,264
35,264
32,192
3,072
Post employment health plan (PEHP)
1,520
33,398
34,578
(1,180)
Retirement recognition
456
456
1,113
(657)
Subtotal - Personnel services
4,951,123
5,083,001
4,885,714
197,287
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 88 of 112
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND - DETAILED STATEMENT - BCI (CONTINUED)
Year Ended September 30, 2019
General Fund
Variance
Original
Final
Favorable
Operating expenditures:
Budget
Budget
Actual
(Unfavorable)
Insurance
67,830
67,830
70,633
(2,803)
Uniforms
15,309
15,309
13,228
2,081
Communications
2,925
2,925
4,996
(2,071)
Telephone
57,872
57,872
49,097
8,775
Utilities
40,828
40,828
43,205
(2,377)
Maintenance
Vehicle
55,800
55,800
50,680
5,120
Equipment
11,415
11,415
11,437
(22)
Computer
61,744
61,744
64,661
(2,917)
Hydrant
3,800
3,800
792
3,008
Building
58,389
58,389
54,738
3,651
Supplies
Office
10,378
10,378
10,014
364
Protective gear
17,833
17,833
19,657
(1,824)
Station
8,618
8,618
12,247
(3,629)
Emergency medical
26,114
26,114
21,981
4,133
Enterprise Lease/Rental
13,984
13,984
13,987
(3)
Hurricane/emergency
-
-
-
-
Equipment
Office
6,536
6,536
3,397
3,139
Fire
14,721
14,721
12,357
2,364
Shop
3,264
3,264
841
2,423
Warehouse/logistics
980
980
-
980
Professional and other fees
Legal and professional
63,832
63,832
47,879
15,953
Property appraiser fees
40,298
40,298
42,942
(2,644)
Tax collector fees
111,266
111,266
114,598
(3,332)
Accounting
12,160
12,160
9,819
2,341
Miscellaneous
Travel
12,279
12,279
8,146
4,133
Water/sewer fee St. 44
3,808
3,808
-
31808
Public information officer
608
608
1,146
(538)
Public education officer
-
-
-
-
Fuel and oil
38,000
38,000
31,040
6,960
Legal advertisements
1,518
1,518
404
1,114
Dues and subscriptions
1,762
1,762
2,040
(278)
CERT team
912
912
632
280
Dive team
575
575
579
(4)
Fire prevention
760
760
-
760
Training
29,415
29,415
19,837
9,578
Hazardous materials
1,140
1,140
874
266
Technical rescue
844
844
1,583
(739)
Boat team
654
654
371
283
K-9 search and rescue
-
-
-
-
Honor guard
OPS
Peer fitness
-
-
-
-
Miscellaneous
2,962
2,962
1,592
1,370
Operational Reserves
Contingency
15,050
15,050
15,050
Subtotal - Operating expenditures
816,183
816,183
741,430
74,753
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 89 of 112
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND - DETAILED STATEMENT - BCI (CONTINUED)
Year Ended September 30, 2019
General Fund
Variance
Original
Final
Favorable
Capital outlay:
Budget
Budget
Actual
(Unfavorable)
Land
-
-
-
-
Station improvements
48,047
48,047
18,321
29,726
Fire & rescue equipment
9,561
9,561
3,727
5,834
Protective gear
16,918
16,918
7,230
9,688
Medical equipment
-
-
2,496
(2,496)
Communication equipment
5,016
77,781
72,226
5,555
Office equipment
-
-
-
-
Computers
11,430
11,430
23,772
(12,342)
TRT
-
-
-
Boat team
-
-
Training equipment
-
-
590
(590)
Vehicle purchase
228
228
-
228
Shop equipment
927
927
4,468
(3,541)
Dive equipment
988
988
1,036
(48)
Subtotal - Capital outlay
93,115
165,880
133,866
32,014
Debt service:
Principal reduction
62,179
62,179
62,179
-
Interest and fiscal charges
11,956
11,956
11,956
Subtotal - Debt service
74,135
74,135
74,135
-
Reserves:
Reserves
332,147
361,724
361,724
TOTAL EXPENDITURES
6,266,703
6,500,923
5,835,145
665,778
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES
(65,107)
(69,145)
32,655
101,800
OTHER FINANCING SOURCES AND USES
Proceeds from capital lease
-
67,625
-
(67,625)
Proceeds from disposition of capital assets
1,520
1,520
(1,520)
Transfer in / (out)
63,587
TOTAL OTHER FINANCING SOURCES AND USES
65,107
69,145
-
(69,145)
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $
- $
-
32,655
$ 32,655
FUND BALANCE - Beginning 533,336
FUND BALANCE - Ending $ 565,991
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 90 of 112
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - COMBINED SERVICE DELIVERY AREAS -
BUDGET AND ACTUAL - IMPACT FEE FUND - SUMMARY STATEMENT
Year Ended September 30, 2019
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Fees:
Impact fees $ 980,000 $ 700,000 $ 97,257 $ (602,743)
Miscellaneous:
Interest
4,500
25,000
30,135
5,135
Transfer from General Fund
-
-
-
-
Other
-
-
-
Subtotal - revenues
984,500
725,000
127,392
(597,608)
Cash brought forward
352,562
85,731
-
(85,731)
TOTAL REVENUES
1,337,062
810.731
127,392
(683,339)
EXPENDITURES
Current
Public safety
Operating expenditures
14,700
19,700
17,547
2,153
Capital outlay
326,250
11,250
6,525
4,725
Debt service:
Principal
57,500
57,500
57,500
-
Interest and fiscal charges
45,900
52,250
45,820
6,430
Reserves
474,379
670,031
-
670,031
TOTAL EXPENDITURES
918,729
810,731
127,392
683,339
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
418,333
-
-
-
OTHER FINANCING SOURCES AND (USES)
Transfers in (out) (418,333) - - -
TOTAL OTHER FINANCING SOURCES
AND (USES) (418,333) - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - $ -
FUND BALANCE - Beginning -
FUND BALANCE - Ending $ -
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 91 of 112
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - COMBINED SERVICE DELIVERY AREAS -
BUDGET AND ACTUAL - IMPACT FEE FUND - DETAILED STATEMENT
Year Ended September 30, 2019
REVENUES
Fees:
Impact fees
Miscellaneous:
Interest
Transfer from General Fund
Other
Subtotal -revenues
Cash brought forward
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
$ 980,000 $ 700,000 $ 97,257 $ (602,743)
4,500 25,000 30,135 5,135
984,500 725,000 127,392 (597,608)
352,562 85,731 - (85,731)
TOTAL REVENUES 1,337,062 810,731 127,392 (683,339)
EXPENDITURES
Operating expenditures:
Impact fee collection
14,700
14,700
12,159
2,541
Professional fees
-
5,000
5,388
(388)
Subtotal - Operating expenditures
14,700
19,700
17,547
2,153
Capital outlay:
Preplanning
-
-
1,800
(1,800)
Construction in progress
176,250
6,250
-
6,250
Emergency signal -station #42
50,000
5,000
4,725
275
Temporary station lease
100,000
-
-
-
Equipment
-
Land purchase
Miscellaneous
-
-
-
-
Subtotal - Capital outlay
326.250
11,250
6,525
4,725
Debt service:
Principal
57,500
57,500
57,500
-
Interest and fiscal charges
45,900
52,250
45,820
6,430
Subtotal - Debt service
103,400
109,750
103,320
6,430
Reserves:
474,379
670,031
670,031
TOTAL EXPENDITURES
918,729
810,731
127,392
683,339
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
418,333
-
OTHER FINANCING SOURCES AND (USES)
Transfers in (out) (418,333)
TOTAL OTHER FINANCING SOURCES
AND (USES) (418,333)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES $ - $ $
FUND BALANCE - Beginning
FUND BALANCE - Ending $
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 92 of 112
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL -COMBINED SERVICE DELIVERY AREA -
INSPECTION FEE FUND - SUMMARY STATEMENT
Year Ended September 30, 2019
Inspection Fee Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Charges for services
Inspection fees $
880,000 $
980,000 $
1,029,049
$ 49,049
Plan review fees
1,150,000
950,000
949,207
(793)
Miscellaneous:
Interest
2,000
25,000
24,354
(646)
Subtotal - revenues
2,032,000
1,955,000
2,002,610
47,610
Cash brought forward
1,507
113,706
-
(113,706)
TOTAL REVENUES
2,033,507
2,068,706
2,002,610
(66,096)
EXPENDITURES
Current
Public safety
Personnel services
1,881,381
1,876,381
1,855,824
20,557
Operating expenditures
149,527
97,027
94,650
2,377
Capital outlay
-
-
-
-
Reserves
2,599
95,298
-
95,298
TOTAL EXPENDITURES
2,033,507
2,068,706
1,950,474
118,232
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $
- $
-
52,136
$ 52.136
FUND BALANCE - Beginning
111706
FUND BALANCE - Ending
S
165,842
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 93 of 112
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - COMBINED SERVICE
DELVERY AREA - INSPECTION FEE FUND - DETAILED STATEMENT
Year Ended September 30, 2019
Inspection Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Charges for services:
Inspection fees $
880,000 $
980,000 $
1,029,049
$ 49,049
Plan review fees
1,150,000
950,000
949,207
(793)
Miscellaneous:
Interest
2,000
25,000
24,354
(646)
Subtotal - revenues
2,032,000
1,955,000
2,002,610
47,610
Cash brought forward
1,507
113,706
-
(113,706)
TOTAL REVENUES
2,033,507
2,068,706
2,002,610
(66,096)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Regular
1,176,311
1,191,311
1,185,512
5,799
Overtime
50,000
50,000
44,787
5,213
Sick leave
25,000
25,000
32,919
(7,919)
Vacation pay
-
-
-
-
Professional/Incentives and holiday pay
9,600
14,600
13,747
853
Payroll taxes
Social Security
96,460
96,460
97,688
(1,228)
Benefits
Retirement
218,000
233,000
231,988
1,012
Health insurance
263,923
193,923
188,847
5,076
Disability insurance
10,300
10,300
-
10,300
Medical clinic/employee physicals
1,000
1,000
1,000
Unemployment compensation
-
-
-
-
Workers compensation
30,787
60,787
60,336
451
Subtotal - Personnel services
1,881,381
1,876,381
1,855,824
20,557
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 94 of 112
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - COMBINED SERVICE
DELVERY AREA - INSPECTION FEE FUND - DETAILED STATEMENT (CONTINUED)
Year Ended September 30, 2019
Inspection Fee Fund
Variance
Original
Final
Favorable
Operating expenditures:
Budget
Budget Actual
(Unfavorable)
Uniforms
1,000
Telephone
1,000
Utilities
2,500
-
-
Rent
50,000
50,000
50,000
-
Maintenance
Computer software & supplies
50,027
36,027
36,750
(723)
Hydrant
-
-
-
-
Supplies
Office
2,000
-
-
Miscellaneous
-
Dues & subscriptions
7,000
3,000
1,985
1,015
Fire prevention
5,000
2,000
3,460
(1,460)
Training
21,000
5,000
1,873
3,127
Travel
10,000
11000
582
418
Subtotal - Operating expenditures
149,527
97,027
94,650
2,377
Capital outlay:
Office facility
Vehicles
Subtotal - Capital outlay
Debt service:
Principal reduction
Interest and fiscal charges
Subtotal - Debt service
Reserves: 2,599 95,298 95,298
TOTAL EXPENDITURES 2,033,507 2,068,706 1,950,474 118,232
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $ - $ - 52,136 $ 52,136
FUND BALANCE - Beginning 113,706
FUND BALANCE - Ending $ 165,842
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2019
Federal
CFDA/ Grantor's
Grantor Agency/Program Title Number Number
FEDERAL AGENCY
U.S. Department of Homeland Security
TYPE A - MAJOR
Passed through the Florida Department of
Federal Emergency Management Agency
Disaster Grant - Public Assistance 97.036 FM5179
Disaster Grant - Public Assistance 97.036 DR4337
TYPE B - NON MAJOR
Staffing of Adequate Fire and Emergency Response
SAFER - Assistance to Firefighters Grants 97.083 EMW-2015-FF-00426
TOTAL FEDERAL FINANCIAL AWARDS
(1) does not include State Share of $21,596
(2) does not include State Share of $4,375
Reconciliation of Grant Revenue to Statement of Revenues Expenditures and Changes in Fund Balance
SEFA Revenue $ 1,081,149
State Grants 25,971
$ 1,107,120
Page 95 of l 12
Program or
Award Receipts/ Disbursements/ Pass through
Amount Revenue Expenditures to Subrecipients
$ 64,788 $ 64,788 (1) $ 64,788 $
898,475 839,310 (2) 839,310
963,263 904,098 904,098
527,473 177,051 177,051
$ 1.490,736 S 1.081,149 S 1,081,149 $
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 96 of 112
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2019
NOTE A - BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards has been prepared on the accrual
basis of accounting in conformity with accounting principles generally accepted in the
United States of America and is in accordance with the provisions of the OMB
Uniform Guidance.
Expenditures reported on the Schedule of Expenditures of Federal Awards include
cash disbursements, whether capitalized or expensed, during the fiscal year as well
as grant related amounts recorded as payable at year end. Revenues reported on
the Schedule of Expenditures of Federal Awards include cash receipts, whether
recognized or deferred, as well as grant receivables recorded at year end.
NOTE B - INDIRECT COSTS
The District did not routinely allocate indirect costs to Federal Awards. Costs
charged to such programs were direct costs.
The District has elected not to use the 10% de minimus indirect cost rate allowed
under the Uniform Guidance.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY - FLORIDA RETIREMENT SYSTEM (FRS) PENSION
PLAN (1)
District's proportion of the net pension liability
District's proportionate share of the net pension liability
District's covered -employee payroll
District's proportionate share of the net pension liability
as a percentage of its covered -employee payroll
Plan fiduciary net position as a percentage of the
total pension liability
2019 2018 2017 2016
0.027233351% 0.031414516% 0.038802719% 0.040983896%
$ 9,378,787 $ 9,462,215 $ 11,477,584 $ 10,348,466
$ 5,436,629 $ 5,753,921 $ 6,933,311 $ 6,745,995
172.51% 164.45% 165.54% 153.40%
82.61% 84.26% 83.89% 84.88%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1)
Contractually required contribution
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
District's covered -employee payroll
Contributions as a percentage of covered -employee
payroll
2018 2018 2017 2016
$ 887,696 $ 912,380 $ 1,119,238 $ 1,099,170
887,696 912,380 1,119,238 1,099,170
$ 5,436,629 $ 5,753,921 $ 6,933,311 $ 6,745,995
16.33% 15.86% 16.14% 16.29%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled,
governments should present information for only those years for which information is available.
Page 97 of 112
2015 2014
0.038209683% 0.041592399%
$ 4,935,293 $ 2,537,748
$ 6,326,722 $ 6,293,887
78.01% 40.32%
92.00% 96.09%
2015 2014
$ 967,270 $ 971,792
967,270 971,792
$ 6,326,722 $ 6,293,887
15.29% 15.44%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY - HEALTH INSURANCE SUBSIDY (HIS) PENSION
PLAN (1)
District's proportion of the net pension liability
District's proportionate share of the net pension liability
District's covered -employee payroll
District's proportionate share of the net pension liability
as a percentage of its covered -employee payroll
Plan fiduciary net position as a percentage of the
total pension liability
2019
2018
2017
2016
0.016634678%
0.019013168%
0.021233558%
0.021530658%
$ 1,861,254
$ 2,012,375
$ 2,270,390
$ 2,509,309
$ 5,436,629
$ 5,753,921
$ 6,933,311
$ 6,745,995
34.24%
34.97%
32.75%
37.20%
2.63%
2.15%
1.64%
0.97%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1)
Contractually required contribution
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
District's covered -employee payroll
Contributions as a percentage of covered -employee
payroll
2019 2018 2017 2016
$ 66,816 $ 68,674 $ 84,244 $ 87,198
66,816 68,674 84,244 87,198
$ 5,436,629 $ 5,753,921 $ 6,933,311 $ 6,745,995
1.23% 1.19% 1.22% 1.29%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled,
governments should present information for only those years for which information is available.
Page 98 of 112
2015 2014
0.021138780% 0.021145042%
$ 2,155,823 $ 1,977,113
$ 6,326,722 $ 6,293,887
34.07% 31.41%
0.50% 0.99%
2015 2014
$ 78,787 $ 65,973
78,787 65,973
$ 6,326,722 $ 6,293,887
1.25% 1.05%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 99 of 112
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - FRSIHIS
September 30, 2019
Changes of Assumptions
Actuarial assumptions for both cost -sharing defined benefit plans are reviewed
annually by the Florida Retirement System Actuarial Assumptions Conference. The
FRS Pension Plan has a valuation performed annually. The HIS Program has a
valuation performed biennially that is updated for GASB reporting in the year a
valuation is not performed. The most recent experience study for the FRS Pension
Plan was completed in 2019 for the period July 1, 2013 through June 30, 2018.
Because the HIS Program is funded on a pay-as-you-go basis, no experience study
has been completed for that program. The actuarial assumptions that determined the
total pension liability for the HIS Program were based on certain results of the most
recent experience study for the FRS Pension Plan.
The total pension liability for each cost -sharing defined benefit plan was determined
using the individual entry age actuarial cost method. Inflation increases for both plans
is assumed at 2.60%. Payroll growth, including inflation, for both plans is assumed at
3.25%. Both the discount rate and the long-term expected rate of return used for
FRS Pension Plan investments was reduced from 7.00% to 6.90%. The Plan's
fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive employees. Therefore, the discount
rate for calculating the total pension liability is equal to the long-term expected rate of
return.
Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond
rate was decreased from 3.87% to 3.50% and was used to determine the total pension
liability for the program (Bond Buyer General Obligation 20-Bond Municipal Bond
Index). Mortality assumptions for both plans were based on the Generational
RP-2000 with Projection Scale BB tables.
Florida Retirement System Pension Plan
There were no changes in actuarial assumptions. As of June 30, 2019, the inflation
rate assumption remained at 2.60 percent, the real payroll growth assumption was
.65 percent, and the overall payroll growth rate assumption remained at 3.25
percent. The long-term expected rate of return was reduced from 7.00 percent to
6.90 percent.
Health Insurance Subsidy Pension Plan
The municipal rate used to determine total pension liability decreased from 3.87
percent to 3.50 percent.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 100 of 112
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - FRS/HIS
September 30, 2019
Pension Expense and Deferred Outflows/Inflows of Resources
In accordance with GASB 68, paragraphs 54 and 71, changes in the net pension
liability are recognized in pension expense in the current measurement period, except
as indicated below. For each of the following, a portion is recognized in pension
expense in the current reporting period, and the balance is amortized as deferred
outflows or deferred inflows of resources using a systematic and rational method over
a closed period, as defined below:
• Differences between expected and actual experience with regard to economic
and demographic factors - amortized over the average expected remaining
service life of all employees that are provided with pensions through the
pension plan (active and inactive employees)
• Changes of assumptions or other inputs - amortized over the average
expected remaining service life of all employees that are provided with
pensions through the pension plan (active and inactive employees)
• Changes in proportion and differences between contributions and
proportionate share of contributions - amortized over the average expected
remaining service life of all employees that are provided with pensions through
the pension plan (active and inactive employees)
• Differences between expected and actual earnings on pension plan investments
- amortized over five years
Employer contributions to the pension plans from employers are not included in
collective pension expense. However, employee contributions are used to reduce
pension expense.
The average expected remaining service life of all employees provided with pensions
through the pension plans at June 30, 2019 remained at 6.4 for FRS and 7.2 years
for HIS.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 101 of 112
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS GASB 75
Changes in Employer's Net OPEB Liability and Related Ratios as of September 30:
Net OPEB Liability
Service Cost
Interest Cost on Total OPEB Liability
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments
Net Change in net OPEB Liability
Net OPEB Liability - Beginning of Year
Net OPEB Liability - End of Year
NOTE: Information for FY 2017 and earlier is not available.
Plan Fiduciary Net Position as of September 30:
Contributions - Employer (including PEHP)
Net Investment Income
Benefit Payments
Administrative Expense
Net Change in Fiduciary Net Position
Fiduciary Net Position - Beginning of Year
Fiduciary Net Position - End of Year
Net OPEB Liability
Fiduciary Net Position as a % of Net OPEB Liability
Covered -Employee Payroll *
Net OPEB Liability as a % of Payroll
2019 2018
$ 684,930 $ 723,937
387,918 326,072
417,788 -
(2,363,827) (620,125)
(406,464) (373,760)
(1,279,655) 56,124
10,173,608 10,117,484
$ 8,893,953 $ 10,173,608
2019
2018
$ 419,063
$ 373,760
(419,063)
(373,760)
8,893,953
10,173,608
0.00%
0.00%
* Because this OPEB plan does not depend of salary, no information is provided.
NOTE: Information for FY 2017 and earlier is not available.
Notes to the Schedule:
Benefit Changes None
Changes of Assumptions The discount rate was changed as follows:
9/30/18 3.64%
9/30/19 0.00%
Population covered by Plan: 278
Plan has no specific trust established. $0 assigned for OPEB.
ADDITIONAL REPORTS
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
Tax Division
Page 102 of 112
We have audited, in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America, the basic financial
statements of the governmental activities and each major and non -major fund of North Collier
Fire Control and Rescue District (the "District") as of and for the year ended September 30,
2019, and the related notes to the financial statements which collectively comprise the District's
basic financial statements as listed in the table of contents and have issued our report thereon
dated June 2, 2020.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly, we do not express an opinion on the effectiveness of the District's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic financial statements will not be prevented or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 103 of 112
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses, as
defined previously. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether North Collier Fire Control and Rescue
District's financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance that are required to be reported under Government
Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 2, 2020
TUSCAN
& Company, PA
C:rtd`ed Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Independent Auditor's Report on Compliance for Each Major
Program/Project and on Internal Control Over Compliance Required by
the Uniform Guidance
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
PNgEom4i,of,142 Section
Tax Division
Report on Compliance for Each Major Federal Program
We have audited North Collier Fire Control and Rescue District's compliance with the types of
compliance requirements described in the OMB Compliance Supplement Supplement, as
applicable, that could have a direct and material effect on each of North Collier Fire Control
and Rescue District's major federal programs for the year ended September 30, 2019. North
Collier Fire Control and Rescue District's major federal programs are identified in the summary
of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations,
contracts, and grants applicable to its major federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of North Collier Fire
Control and Rescue District's major federal programs based on our audit of the types of
compliance requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States of America; and audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards" ("Uniform Guidance"). Those
standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about North Collier Fire
Control and Rescue District's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 105 of 112
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of
North Collier Fire Control and Rescue District's compliance with those requirements.
Opinion on Each Major Federal Program
In our opinion, North Collier Fire Control and Rescue District complied, in all material
respects, with the types of compliance requirements referred to above that could have a direct
and material effect on each of its major federal programs for the year ended September 30,
2019.
Report on Internal Control Over Compliance
Management of North Collier Fire Control and Rescue District is responsible for establishing and
maintaining effective internal control over compliance with the types of compliance requirements
referred to above. In planning and performing our audit of compliance, we considered North
Collier Fire Control and Rescue District's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of North Collier Fire Control and
Rescue District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Page 103 of 112
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses, as
defined previously. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether North Collier Fire Control and Rescue
District's financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance that are required to be reported under Government
Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 2, 2020
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 107 of 112
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS - FEDERAL AWARDS
Year ended September 30, 2019
Section I — Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Unmodified
Internal control over financial reporting:
Control deficiency(ies) identified?
Yes
X
No
Significant deficiency(ies) identified?
Yes
X
No
Material weakness(es) identified?
Yes
X
None reported
Noncompliance material to financial statements
noted?
Yes
X
No
Federal Awards
Internal control over major programs:
Control deficiency(ies) identified?
Yes
X
No
Significant deficiency(ies) identified?
Yes
X
No
Material weakness(es) identified?
Yes
X
None reported
Type of auditors report issued on
compliance for major programs
Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR,
Section 200.516(a)?
Yes
X
No
Identification of major programs (Type A):
CFDA
Numbers Name of Federal Program or Cluster
U.S. Department of Homeland Security
97.036 Diaster Grants - Public Assistance
Federal Emergency Management Agency
Dollar threshold used to distinguish between
Type A and Type B programs Threshold used was $750,000.
Auditee qualified as low -risk auditee? Yes X No
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 108 of 112
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS - FEDERAL AWARDS
Year ended September 30, 2019
Listing of Subrecipients and matching amounts passed -through:
None - not applicable
Section II- Financial Statement Findings
There were no deficiencies, material weaknesses, or instances of noncompliance related to
the financial statements.
Section III- Federal Award Findings and Questioned Costs
There were no audit findings related to Federal Awards required to be reported by 2 CFR,
Section 200.516(a).
Section IV- Status of Federal Prior Year Findings
There were no prior year findings.
TUSCAN
& Company, PA
Ccrtifiied Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Tax Division
Page 109 of 112
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
We have examined North Collier Fire Control and Rescue District's compliance with Section
218.415, Florida Statutes, regarding the investment of public funds during the year
ended September 30, 2019. Management is responsible for North Collier Fire Control and
Rescue District's compliance with those requirements. Our responsibility is to express an opinion
on North Collier Fire Control and Rescue District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a test
basis, evidence about North Collier Fire Control and Rescue District's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on North Collier Fire Control and Rescue
District's compliance with specified requirements.
In our opinion, North Collier Fire Control and Rescue District complied, in all material respects,
with the aforementioned requirements for the year ended September 30, 2019.
This report is intended solely for the information and use of the North Collier Fire Control and
Rescue District and the Auditor General, State of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
1-,JA� j G� PAI/
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 2, 2020
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 - Phone: (239) 333-2090 • Fax: (239) 333-2097
TUSCAN
& Company, PA
Ccrtified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
Tax Division
Page 110 of 112
We have audited the accompanying basic financial statements of North Collier Fire Control and
Rescue District (the "District") as of and for the year ended September 30, 2019 and have issued
our report thereon dated June 2, 2020.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America and Chapter
10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report
on Internal Control over Financial Reporting and Compliance and Other Matters based on an
audit of the financial statements performed in accordance with Government Auditing Standards
and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports, which
are dated June 2, 2020, should be considered in conjunction with this report to management.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information, which is not included in the aforementioned
auditor's report:
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine
whether or not corrective actions have been taken to address findings and
recommendations made in the preceding annual financial audit report. The prior year
report contained no financially significant comments.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. No such
recommendations were noted to improve financial management.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 111 of 112
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address
violations or noncompliance with provisions of contracts or grant agreements, or
abuse, that have an effect on the financial statements that is less than material but more
than inconsequential. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)4., Rule of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in the management letter, unless disclosed in the notes to
the financial statements. The District discloses this information in the notes to the
financial statements.
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be
included as to whether or not the local government entity has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the District
did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, we
have applied financial condition assessment procedures. It is management's responsibility
to monitor the District's financial condition, and our financial condition assessment was
based in part on representations made by management and the review of financial
information provided by same.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General,
we applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by management.
Pursuant to Section 10.554(1)(i)5.b.2, Rules of the Auditor General, if a deteriorating
financial condition(s) is noted then a statement is so required along with the conditions
causing the auditor to make such a conclusion. No such conditions were noted.
Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General, requires a
statement indicating a failure, if any, of a component unit Special District to provide
financial information necessary to a proper reporting of the component unit within the
audited financial statements of this entity (F.S. Section 218.39(3)(b)). There are no
known component special districts required to report within these financial statements.
Page'112 of 112
Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our
audit to determine the entity's compliance with the provisions of Section 218.415,
Florida Statutes, regarding the investment of public funds. In connection with our
audit, we determined that the District complied with Section 218.415, Florida Statutes
as reported in our Independent Accountant's Report on Compliance with Section
218.415, Florida Statutes dated June 2, 2020, included herein.
PRIOR YEAR COMMENTS:
There were no financially significant prior year comments.
CURRENT YEAR COMMENTS:
There were no financially significant comments noted.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners, management, the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
,W� i �Lo
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 2, 2020
EXHIBIT
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSIONERS
M. James Burke ■ Christopher L. Crossan . Norman E. Feder .1. Christopher Lombardo ■ James A. Calamari
June 25, 2020
Auditor General's Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, FL 32399-1450
We are pleased to note that the audit report for the fiscal year 2018/2019 for the North Collier Fire
Control and Rescue District reflected no current or prior year comments which require
management's response.
The Board of Fire Commissioners and management staff of the North Collier Fire Control &
Rescue District maintain their commitment to create and maintain internal controls, and policy and
procedures to insure accurate reporting, accountability and provide for the financial stability of the
District.
Sincerely,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
1885 Veterans Park Drive Naples, FL 34109 ■ (239) 597-3222 ■ Fax (239) 597-7082 ■ www.northcollierfire.com